Japan’s average annual salary reached a record ¥4.78 million (~$30,250 USD) in the most recent National Tax Agency survey (up 3.9%), the highest figure since records began in 1949. Tokyo workers earn the most in the country, with the prefecture’s minimum wage rising to ¥1,226 per hour in October 2025 and nominal wages tracking 2–3% higher year on year through 2025 and into early 2026. This guide covers what people earn across Japan, how Tokyo compares, and what the latest wage data means for international professionals.
Japan’s salary landscape has shifted in a way it hasn’t in three decades. Wage growth has now exceeded 5% in two consecutive Shunto spring wage negotiations (2024 and 2025), and the National Tax Agency’s most recent survey shows the national average annual salary climbed to a new all-time high. For international professionals, foreign investors, and anyone considering a move to Tokyo, understanding these numbers matters for career planning, household budgets, and decisions about Tokyo’s luxury real estate market.
This guide covers the new official data, how Japan’s salary structure works, regional differences, what high earners take home, and how strong incomes connect to Tokyo’s property market.
What is the average salary in Japan in 2026?
The average annual salary in Japan was ¥4.78 million (~$30,250 USD) – (exchange rate as of late April 2026) according to the most recent National Tax Agency Private-Sector Salary Survey, published in September 2025. This was an increase of 3.9% year on year and the fourth consecutive annual rise. It is the highest figure recorded since the survey began in 1949, beating the previous peak of ¥4.67 million set in 1997.
The same survey breaks the figure down further:
- Men: ¥5.87 million (+3.2%)
- Women: ¥3.33 million (+5.5%)
- Regular employees: ¥5.45 million
- Non-regular employees (including part-time): ¥2.06 million
A note on data timing: The National Tax Agency releases its annual Private-Sector Salary Survey each September, covering the previous calendar year. The figures cited above are the most recent official annual benchmark available. For more current wage trends, the Ministry of Health, Labour and Welfare’s Monthly Labour Survey (covered later in this article) provides month-by-month data.
How does Japan’s salary structure work?
Japan’s pay system combines a monthly base salary with, usually, two large bonuses paid each year, most of the time in summer and winter. These bonuses can add the equivalent of two to four months of base pay annually, which means total compensation is often well above what monthly figures suggest. The average summer 2025 bonus across Japan was ¥426,337, up 2.9% year on year, according to the Ministry of Health, Labour and Welfare.
Traditionally, Japanese companies have used age and tenure to set salaries, with workers earning more as they stay longer. This model is changing. Many large firms now use merit-based systems, with performance reviews driving raises rather than time served. Starting salaries for new graduates have also risen sharply: trading house Marubeni, for example, raised its 2026 starting monthly salary for graduates to ¥330,000.
If you are looking for work or thinking about changing jobs in Japan, Hello Work is the country’s official employment service, with branches that specialize in supporting foreign workers.
How much do workers earn in Tokyo compared to the rest of Japan?
Tokyo workers earn more than those in any other prefecture. The capital is home to the headquarters of most large Japanese corporations, the country’s financial sector, and the largest concentration of professional services jobs. This drives wages well above the national average.
The Ministry of Health, Labour and Welfare’s most recent Basic Survey on Wage Structure shows clear regional differences. Tokyo leads, followed by Kanagawa (where Yokohama is the main hub) and Osaka. Rural prefectures in Tōhoku, Shikoku, and Kyūshū tend to sit 10–20% below the national average.
Average annual salary by region
| Region | Average Annual Salary | Notes |
|---|---|---|
| Tokyo | ¥6.2–6.9 million ($39,200–$43,700) | Highest in Japan; driven by finance, tech, and professional services |
| Kanagawa (Yokohama) | ¥5.8–6.4 million ($36,700–$40,500) | Close second; major manufacturing and corporate base |
| Osaka | ¥4.8–5.2 million ($30,400–$32,900) | Western Japan’s commercial centre |
| Aichi (Nagoya) | ¥4.7–5.0 million ($29,700–$31,600) | Automotive and manufacturing hub |
| Fukuoka | ¥4.2–4.5 million ($26,600–$28,500) | Lower wages, lower living costs |
| Japan National Average | ¥4.78 million ($30,250) | Across all 47 prefectures |
Exchange rate: approximately ¥158 = $1 USD as of late April 2026.
Tokyo’s salary advantage comes with a corresponding cost-of-living premium, especially for housing. Cities like Fukuoka, Sapporo, and Hiroshima offer rents and daily expenses that can be 30–40% lower than in central Tokyo, which means a smaller paycheck can sometimes deliver more disposable income outside the capital.
For property investors, Tokyo’s higher wages support stronger rental demand at higher price points. This is one reason the capital has become a focus for both domestic and international real estate investment.
Which industries pay the highest salaries in Japan?
According to the most recent National Tax Agency survey, the highest-paying industries by average annual salary are:
- Electricity, gas, heat supply and water: ¥8.32 million (+7.4%)
- Finance and insurance: ¥7.02 million (+7.7%)
- Information and communications: ¥6.60 million
The lowest-paying sector is accommodation and food services at ¥2.79 million.
Within technology and finance, salaries vary widely by company and seniority. Senior software engineers at major tech firms can earn ¥10–15 million annually, while investment banking professionals in Tokyo’s financial district often earn ¥8–25 million depending on rank. Doctors top Japan’s occupational salary rankings, with an average annual income of around ¥10.6 million according to recruitment data from Doda.
You can compare salaries across companies using Glassdoor for large multinational companies or local platforms like Doda (JP only).
What is Japan’s minimum wage in 2025–2026?
Japan’s minimum wage is set at the prefectural level, with rates revised every October. The fiscal 2025 revision, effective from October 2025, was the largest single-year increase since hourly indication began in 2002.
Key figures:
- National weighted average minimum wage: ¥1,121 per hour (up from ¥1,055)
- Tokyo: ¥1,226 per hour (effective 3 October 2025, up from ¥1,163)
- Kanagawa: ¥1,225 per hour
- Lowest: Kōchi, Miyazaki, and Okinawa at ¥1,023 per hour
For the first time in Japanese history, all 47 prefectures now have minimum wages above ¥1,000 per hour. The Japanese government has set a long-term target of ¥1,500 per hour by the late 2020s, which would require average annual increases of around 7.3%.
Are wages actually rising in Japan?
Yes, and at a pace not seen for over thirty years. The Shunto spring wage negotiations, where major companies and labour unions settle annual pay rises, have delivered increases above 5% in two consecutive years for the first time since 1991–1992.
- 2024 Shunto: 5.10% average wage increase (highest since 1991)
- 2025 Shunto: around 5.25% final / 5.46% preliminary (Rengo data, March 2025)
- 2025 base pay increase (excluding seniority bumps): 3.7%
Several factors are driving these rises: persistent labour shortages in healthcare, IT, construction, and logistics; sustained inflation putting pressure on real wages; and government policy actively encouraging large corporations to raise pay.
How are wages tracking through 2025 and into 2026?
While the National Tax Agency’s annual survey gives the most reliable benchmark, it is published with a one-year lag. For more current trends, the Ministry of Health, Labour and Welfare’s Monthly Labour Survey provides month-by-month data.
The picture through 2025 was one of solid nominal wage growth held back by inflation:
- Total cash earnings rose between 1.5% and 3% year on year for most of 2025
- Full-time employee wages typically rose 1.9–2.6% year on year
The pattern shifted in early 2026. Real wages turned positive in January 2026 for the first time in 13 months, with nominal wages up 3% year on year. February 2026 saw nominal wage growth accelerate to 3.3%, the strongest reading since July 2025, with base pay rising at the fastest pace in nearly 34 years. This shift suggests that the wage gains from successive Shunto rounds are finally outpacing inflation in workers’ take-home pay.
For international professionals planning a move to Tokyo, or investors evaluating rental demand in central wards, this matters because it indicates household purchasing power is starting to recover after several years of. Whether the trend holds will depend on inflation, the 2026 Shunto results due in spring, and the Bank of Japan’s monetary policy path.
How much do part-time workers earn in Japan?
Part-time work plays a major role in Japan’s labour market, particularly for students, parents returning to work, and people who want flexible schedules.
The average part-time hourly wage in Japan now sits at approximately ¥1,300–¥1,370, with the highest rates in Tokyo and other large cities, according to the most recent MHLW data. Information services and professional consulting roles pay around ¥1,374 per hour, while hospitality and food service positions average closer to ¥1,050.
In Tokyo, employers typically pay around ¥150–¥180 above the legal minimum wage for entry-level part-time positions, reflecting the competitive labour market. Foreign residents can work part-time once they have work permission (officially called Permission to Engage in Activity Other Than That Permitted, or 資格外活動許可). Student visa holders can work up to 28 hours per week during term time.
For property investors, part-time wage levels matter when assessing rental demand near universities, transport hubs, and commercial districts, where part-time workers form a significant share of the local rental market.
What do executives and high earners take home in Tokyo?
Tokyo offers some of Asia’s most competitive senior compensation. The picture has shifted notably in the last few years, as Japanese firms have moved toward performance-based pay and added long-term equity incentives.
Typical annual compensation ranges in Tokyo (most recent available data):
- Manager-level positions: ¥10–11.5 million ($63,300–$72,800)
- CEO base salary (average): ¥12 million ($75,900); median total compensation including incentives reached ¥271 million ($1.71 million) in recent surveys
- Investment banking: ¥8–25 million depending on rank
- Management consulting (top firms): ¥14 million and above, with senior partners well above this
- Senior software engineers (major tech firms): ¥10–15 million; principal engineers can reach ¥20 million or more in total compensation
International companies operating in Japan often add housing allowances, international school fee coverage, and tax equalization to their packages. For senior expatriate executives, this can substantially increase the value of total compensation compared with the headline base salary.
These numbers are gross. Japan’s progressive tax system and social insurance contributions mean take-home pay is typically 70–75% of gross for most workers, dropping toward 65% for very high earners. A professional earning ¥15 million gross can expect roughly ¥10.5–11.5 million in net income after tax and social charges.
How does Tokyo’s cost of living compare to other global cities?
Tokyo’s salary figures often look modest in dollar terms compared to other major financial centers, but the city’s cost of living offsets much of that gap. Following several years of yen depreciation, Tokyo now sits well below other major global capitals on most cost-of-living measures.
The cost of living in New York is around ~80% higher than in Tokyo excluding rent, and ~150% higher once rent is included. London comes in roughly ~50% more expensive overall. To match the standard of living a ¥750,000 monthly budget provides in Tokyo, a household would need around ¥1.47 million in London and around ¥1.88 million in New York.
Housing is the single biggest difference. A central three-bedroom rental in Tokyo runs around ¥390,000 ($2,470 USD) per month, well below equivalent properties in London, New York, or Paris. Public transport, healthcare, and dining out also tend to come in lower than in comparable Western cities. Utility costs and mobile phone plans are roughly in line with global averages.
For households earning Tokyo salaries, this gap matters. A ¥10 million annual income in Tokyo delivers more disposable income than the same nominal figure would in New York or London, and a meaningful share of that surplus often goes toward property purchase or savings.
How much do foreign workers earn in Japan?
Foreign workers in Japan, on average, earn less than Japanese workers, though the picture varies sharply by industry and seniority.
According to the Ministry of Health, Labour and Welfare’s most recent Basic Survey on Wage Structure, the average monthly salary for foreign workers in Japan was approximately ¥274,900 (~$1,740 USD), with average annual bonuses of around ¥229,900 (~$1,455 USD). The gap with the national average reflects two main factors: foreign workers tend to be younger than the Japanese workforce average, and they have shorter average tenure with their employers. Japan’s pay system rewards both age and tenure, so this drags down the foreign-worker average.
The mix of jobs that foreign workers commonly hold also plays a role. English teaching is one of the most common entry routes into Japan for native English speakers, and it sits well below the national average pay band. With teaching jobs forming a significant share of the foreign worker population, this concentration in lower-paid sectors helps explain why the foreign worker average sits where it does.
Skilled foreign professionals in specialised fields tell a different story. IT engineers, finance specialists, and senior executives at multinational companies in Tokyo often earn ¥6-12 million or more, with senior roles in investment banking and consulting reaching well above this. Multinational firms following global pay scales typically pay foreign and Japanese employees on the same basis.
Japan’s prefectural minimum wages apply equally to Japanese and foreign workers. There is no legal pay differential by nationality.
How much do English teachers get paid in Japan?
The average English teacher salary in Japan is estimated at around ¥280,000 per month (~$1,775 USD), which works out to roughly ¥3.4 million per year (~$21,500 USD). This sits well below Japan’s national average annual salary of ¥4.78 million but pay varies significantly depending on the type of teaching role.
The most common entry route is the JET Programme (Japan Exchange and Teaching Programme), an official Japanese government scheme that places foreign nationals as Assistant Language Teachers in public schools. JET pay is set by the government and increases each year of the contract. As of April 2025, first-year participants earn ¥4.02 million annually (~$25,400 USD, around ¥335,000 per month), rising to ¥4.32 million (~$27,300 USD) in years four and five. JET also covers airfare, provides full benefits, and arranges the work visa.
Outside of JET, most English teaching jobs fall into a handful of categories. Eikaiwa, which are private English conversation schools serving children, students, and adults, typically pay around ¥250,000 to ¥280,000 per month. Assistant Language Teacher roles arranged through dispatch companies, rather than JET, often pay slightly less, in the ¥230,000 to ¥270,000 range. International schools sit at the top end, paying experienced licensed teachers anywhere from ¥400,000 to ¥600,000 per month, but these positions are far fewer and require teaching credentials. University faculty positions pay similar levels but are highly competitive and usually require a master’s degree or PhD. Private tutoring outside of these structures can supplement income, with hourly rates of ¥2,000 to ¥5,000 common for teachers who already hold a valid work visa.
For most foreign professionals on a typical teaching salary, central Tokyo is affordable for rentals in residential wards but generally out of reach for property purchase. International school teachers and senior university faculty sit in a different bracket, with salaries that can support property ownership in Tokyo’s mid-tier price ranges.
How do high salaries connect to Tokyo’s real estate market?
Strong incomes in Tokyo support a property market that has seen sustained price growth. The combination of a weaker yen, low interest rates, and a stable legal framework has drawn foreign buyers, who account for an estimated 15–20% of luxury condominium purchases in central Tokyo.
The average new condominium in Tokyo’s 23 wards now costs over ¥120 million, with prices in central wards like Minato and Shibuya often well above this. Properties in established luxury districts such as Roppongi, Azabu, Daikanyama, and Omotesando continue to attract steady buyer demand. For up-to-date market data, see our Tokyo Condo Prices and Sales article.
Japanese banks have also broadened their mortgage lending. More are now willing to lend on income-based assessments rather than purely on collateral, which has opened the market to foreign professionals with strong income streams. Mortgage rates remain near historic lows for both owner-occupier and investment loans.
Where do high earners typically buy in Tokyo?
International professionals and senior Japanese executives tend to concentrate in a small number of central wards. Minato Ward leads, particularly the neighbourhoods of Roppongi, Azabu, Hiroo, and Akasaka, all of which sit close to embassies, international schools, and the city’s main business districts. Shibuya Ward (especially Daikanyama, Omotesando, and Hiroo on the boundary with Minato) and Chiyoda Ward (close to government and finance) are the other main centres.
For high-income professionals making their first Tokyo property purchase, working with an agency experienced in international clients makes the process significantly smoother. Housing Japan has over 25 years of experience in central Tokyo’s luxury market and provides full English-language support across acquisition, financing coordination, and property management.
What’s next for Japan’s salaries?
The trajectory points upward, but with some important caveats. Several forces are pushing wages higher:
- Demographics: Japan’s shrinking working-age population is creating real labour shortages across healthcare, construction, logistics, and technology.
- Government policy: The minimum wage target of ¥1,500 per hour by the late 2020s and ongoing pressure on large corporations to deliver above-inflation pay rises.
- Foreign talent competition: Government plans to admit 820,000 skilled foreign workers over five years are creating upward pressure on technical and professional salaries.
- Technology and AI: Premium pay for skills in AI, cybersecurity, and cloud computing as Japanese firms accelerate digital transformation.
The main risks to wage growth are the structural gap between large corporations and small and medium enterprises, and inflation that continues to erode real purchasing power. The government has signalled it wants the 2026 Shunto to deliver another above-inflation rise, though the final outcome will depend on how SMEs respond.
Conclusion: What this means for professionals and investors
Japan’s salary environment looks very different from the picture even three years ago. The ¥4.78 million national average is a record. Tokyo continues to lead the country, real wages have started to rise again in early 2026, and minimum wages have lifted at a pace not seen since the system was put in place. For high earners, especially international professionals working in finance, technology, or senior management roles, Tokyo offers competitive compensation alongside one of Asia’s most stable property markets.
Whether you’re considering a career move to Japan, evaluating compensation packages, or thinking about how a strong income translates into property ownership in central Tokyo, understanding these new figures is a useful starting point.
Housing Japan specializes in investment and luxury residential real estate in central Tokyo, with services covering acquisition, sales, and long-term rentals, and full property management. Our multilingual team works with international professionals, executives, and investors based in Japan and abroad.
Ready to explore Tokyo property options? Contact Housing Japan for a consultation with our team.
Q&A: Salaries and Real Estate in Japan
What is the average salary in Japan in 2026?
The average annual salary in Japan was ¥4.78 million (~$30,250 USD) according to the National Tax Agency’s most recent Private-Sector Salary Survey. This was a 3.9% year-on-year increase and the highest figure recorded since the survey began in 1949. Median annual salary is around ¥3.8 million. The NTA releases its annual survey each September with prior-year data, and nominal wages have continued to rise through 2025 and into early 2026.
What is the average salary in Tokyo?
Tokyo workers earn the highest average salary in Japan. Average annual income in Tokyo runs roughly ¥6.2–6.9 million (~$39,200–~$43,700 USD) depending on the data source and worker category, well above the national average of ¥4.78 million. Tokyo’s higher salaries reflect the concentration of major corporations, financial services, and professional firms based there.
How much is the minimum wage in Tokyo in 2026?
Tokyo’s minimum wage is ¥1,226 per hour, effective from 3 October 2025. This is the highest in Japan, followed by Kanagawa at ¥1,225. The national weighted average minimum wage stands at ¥1,121 per hour, with all 47 prefectures now above ¥1,000 per hour for the first time in Japanese history.
Are salaries actually increasing in Japan?
Yes. Japan’s 2024 Shunto wage negotiations delivered an average pay rise of 5.10%, the highest since 1991, and the 2025 round delivered around 5.25% (5.46% preliminary). This is the first time in over thirty years that wage rises have exceeded 5% in two consecutive years.
Are real wages rising in Japan?
Real wages in Japan turned positive in January 2026 for the first time in 13 months, with nominal wages up 3% year on year. February 2026 saw nominal wage growth accelerate to 3.3%, the strongest since July 2025. After several years where inflation ate into purchasing power, the gains from successive Shunto wage rounds appear to be filtering through to household take-home pay.
Which industries pay the highest salaries in Japan?
Based on the most recent National Tax Agency survey, the highest-paying industries are electricity, gas and water supply (¥8.32 million annual average), finance and insurance (¥7.02 million), and information and communications (¥6.60 million). The lowest is accommodation and food services at ¥2.79 million.
How much do executives earn in Tokyo?
Manager-level positions in Tokyo typically earn ¥10–11.5 million annually. Average CEO base salary in Japan is around ¥12 million, with median total compensation, including bonuses and long-term incentives, reaching ¥271 million in recent surveys. Investment bankers and senior consultants in Tokyo can earn ¥14 million and well above.
What is the average part-time hourly wage in Japan?
Part-time workers in Japan earn an average of approximately ¥1,300–¥1,370 per hour, with the highest rates in Tokyo and other major cities. Tokyo’s minimum wage of ¥1,226 sets the legal floor, and most employers pay above this for entry-level part-time roles.
How much do foreign workers earn in Japan?
the average monthly salary for foreign workers in Japan was approximately ¥274,900 (~$1,740 USD), with average annual bonuses of around ¥229,900 (~$1,455 USD), according to the most recent MHLW data. This is below the national average, mainly because foreign workers tend to be younger and have shorter average tenure. Skilled foreign professionals in IT, finance, and consulting often earn ¥6–12 million or more in Tokyo.
How much do English teachers get paid in Japan?
The average English teacher salary in Japan is estimated at around ¥280,000 per month (~$1,775 USD), or roughly ¥3.4 million per year (~$21,500 USD). The JET Programme, an official Japanese government scheme, ays first-year Assistant Language Teachers ¥4.02 million annually (~$25,400 USD, about ¥335,000 per month), rising to ¥4.32 million (~$27,300 USD) by years four and five. Eikaiwa and dispatch ALT roles typically pay ¥230,000–¥280,000 per month, while international schools and university faculty roles pay ¥400,000–¥600,000.
Can foreigners work part-time in Japan?
Yes. Foreign residents can work part-time once they receive Permission to Engage in Activity Other Than That Permitted (資格外活動許可) from immigration. Student visa holders can work up to 28 hours per week during term time. Holders of other visas should check the specific work limits attached to their status.
What is the average new Tokyo condominium price?
The average new condominium in Tokyo’s 23 wards now sells for over ¥120 million. Prices in central luxury wards such as Minato and Shibuya often run well above this, particularly in established neighbourhoods like Roppongi, Azabu, Daikanyama, and Omotesando.
Is Tokyo cheaper to live in than New York or London?
Yes. The cost of living in New York is around ~80% higher than in Tokyo excluding rent, and ~150% higher once rent is factored in. London is around ~50% more expensive overall. Tokyo housing in particular runs significantly below equivalent properties in major Western capitals. Yen depreciation in recent years has widened this gap further for international households earning in dollars, pounds, or euros.
What is a good salary in Tokyo?
A salary of ¥6–10 million per year (~$38,000–~$63,300 USD) is generally considered a comfortable middle-to-upper income in Tokyo, supporting a central-area apartment and a reasonable lifestyle. ¥15 million (~$94,900 USD) and above places a household in Tokyo’s high-income tier, with capacity for international school fees and luxury property purchases.
All USD conversions are as of late April 2026 and are subject to change
Considering Tokyo for Your Next Property Purchase?
Housing Japan is an investment and luxury real estate broker in central Tokyo with 25 years of experience. Our multilingual team offers end-to-end service for international clients, covering purchase, sale, rental, and full property management. We work with buyers based anywhere in the world who want a partner on the ground in Tokyo.
Sources:
- National Tax Agency – Private-Sector Salary Survey
- Ministry of Health, Labour and Welfare – Basic Survey on Wage Structure
- MHLW – Monthly Labour Survey
- Tokyo Labour Bureau – Minimum Wage Information
- Japanese Trade Union Confederation (Rengo)
Written by the Housing Japan Editorial Team, Tokyo real estate specialists with over 25 years of experience in Japan’s property market.
