MINIMUM AND AVERAGE SALARY IN JAPAN
Japan does not have one nationwide hourly minimum wage. Each prefecture sets its own rate, while employee pay also depends heavily on bonuses, working hours and the sector. For a realistic offer assessment, it is important to separate basic pay from total cash earnings and to compare the proposed city with the wider Japan immigration guide.
AT A GLANCE
- The current weighted average of Japan’s prefectural minimum wages is ¥1,121 per hour; the active rates range from ¥1,023 to ¥1,226.
- Average monthly cash earnings across surveyed industries were ¥357,979 in 2025, according to the Ministry of Health, Labour and Welfare.
- This earnings measure includes regular pay, overtime and bonuses. It is not the same as a monthly base salary or take-home pay.
- National income tax is progressive, from 5% to 45%; local resident tax and social-insurance contributions also affect net pay.
CONTENTS
Minimum wage in Japan
Japan’s statutory minimum wage is set by prefecture, not as a single national hourly rate. The current rates, introduced during the 2025 fiscal-year revision cycle, range from ¥1,023 per hour in Okinawa to ¥1,226 in Tokyo. Their weighted national average is ¥1,121 per hour.
A separate specific minimum wage may apply to particular industries in some prefectures. Where a sectoral rate is lower than the regional minimum, the higher regional rate applies. The Ministry of Health, Labour and Welfare has announced further revisions for the 2026 fiscal year, but their effective dates begin later in the year; an offer should therefore be checked against the rate applicable on its actual start date.
Highest current prefectural minimum wages
| Prefecture | Yen per hour |
|---|---|
| Tokyo | 1,226 |
| Kanagawa | 1,225 |
| Osaka | 1,177 |
| Saitama | 1,141 |
| Chiba | 1,140 |
| Aichi | 1,140 |
| Kyoto | 1,122 |
| Hyogo | 1,116 |
| Shizuoka | 1,097 |
| Mie | 1,087 |
IMPORTANT
Hourly minimum-wage rates are not a reliable way to estimate a full-time monthly salary. Actual monthly pay depends on scheduled hours, overtime, bonuses, contract type and whether the employee is covered by a specific industry rate.
Average earnings and what the figures mean
The Ministry of Health, Labour and Welfare’s Monthly Labour Survey recorded average monthly cash earnings of ¥357,979 across surveyed industries in 2025. This national figure covers establishments with five or more employees and combines regular pay, overtime compensation and special payments such as seasonal bonuses.
That definition matters in Japan, where bonuses can materially change annual earnings. A job advert may quote a monthly base salary, a monthly fixed salary including allowances, or an annual package with two bonus payments. These amounts cannot be compared directly without checking what is included.
For foreign applicants, working in Japan usually requires an employer-sponsored status of residence. The salary should be reviewed alongside the job description, the location, overtime policy, bonus terms and the employer’s support with relocation.
NOTE
The Monthly Labour Survey is an earnings series, not a median-pay series. It should not be described as the salary received by a typical individual employee, because high bonuses and differences in working patterns affect the average.
Average earnings by economic sector
The table below uses the same official 2025 survey and is sorted from the highest to the lowest average monthly cash earnings. It is useful for comparing broad industries, but it does not replace a salary benchmark for a specific occupation, seniority level or city.
Average monthly cash earnings by economic sector
| Economic sector | Japanese yen per month |
|---|---|
| Electricity and gas supply | 636,757 |
| Finance and insurance | 564,017 |
| Information and communications | 553,084 |
| Scientific research, professional and technical services | 526,776 |
| Mining and quarrying | 474,385 |
| Construction | 466,525 |
| Real estate and goods rental and leasing | 436,864 |
| Manufacturing | 433,746 |
| Education and learning support | 409,766 |
| Compound services | 402,039 |
| Transport and postal activities | 382,596 |
| All surveyed industries | 357,979 |
| Medical, health care and welfare services | 319,659 |
| Wholesale and retail trade | 313,697 |
| Other services | 293,326 |
| Living-related, personal and entertainment services | 243,891 |
| Accommodation, food and drink services | 141,584 |
Engineering, IT, construction, transport, care services and other fields with persistent recruitment needs can offer a more practical starting point for an overseas applicant. The current list of shortage occupations in Japan helps put the sector data into a labour-market context.
Taxes, social insurance and take-home pay
Japanese national income tax is progressive. Taxable income is not the same as gross salary: employment-income deductions, basic deductions and other allowances can reduce the taxable amount. A 2.1% reconstruction surtax is calculated on the national income-tax amount.
National income-tax rates
| Taxable annual income | Rate | Deduction from calculated tax |
|---|---|---|
| Up to ¥1,949,000 | 5% | ¥0 |
| ¥1,950,000–¥3,299,000 | 10% | ¥97,500 |
| ¥3,300,000–¥6,949,000 | 20% | ¥427,500 |
| ¥6,950,000–¥8,999,000 | 23% | ¥636,000 |
| ¥9,000,000–¥17,999,000 | 33% | ¥1,536,000 |
| ¥18,000,000–¥39,999,000 | 40% | ¥2,796,000 |
| ¥40,000,000 and above | 45% | ¥4,796,000 |
Employees also contribute to pension, health insurance, employment insurance and, where applicable, long-term care insurance. Local resident tax is generally assessed separately based on prior-year income. For an indicative gross-to-net scenario, use the net salary calculator; the result is a planning estimate, not a payroll calculation or tax advice.
How to assess a salary offer in Japan
Start with the annual package rather than the monthly headline. Ask whether the offer includes a fixed overtime allowance, how many hours it covers, whether bonuses are guaranteed or discretionary, and whether transport, housing or relocation support is provided. A higher salary can lose much of its advantage if it requires commuting into central Tokyo or paying a large upfront housing deposit.
Rent is often the largest variable. A salary that works well in a regional city may feel tight in Tokyo, Yokohama or central Osaka, so use current prices in Japan to build a city-specific budget rather than relying on a national average.
Finally, compare an offer with a realistic alternative rather than a headline figure from another country. The salary comparison tool lets you enter salary, rent and recurring costs for two locations in one calculation.
Sources
- Japan Ministry of Health, Labour and Welfare
- Central Minimum Wages Council of Japan
- Japan National Tax Agency
- Japan Pension Service
- Statistics Bureau of Japan
Frequently Asked Questions
What is the minimum wage in Japan in 2026?
Japan has prefectural minimum wages rather than one uniform national rate. The current active rates range from ¥1,023 to ¥1,226 per hour, with a weighted national average of ¥1,121.
What is the average monthly salary in Japan?
Average monthly cash earnings were ¥357,979 in 2025 for all surveyed industries. This measure includes bonuses and other special payments, so it is not equivalent to a base monthly salary.
Which sectors have the highest average earnings?
In the 2025 Monthly Labour Survey, electricity and gas supply, finance and insurance, information and communications, and professional and technical services recorded the highest average monthly cash earnings.
Are bonuses included in Japanese salary statistics?
They are included in the Monthly Labour Survey’s cash-earnings measure. This is why annual averages based on that series can differ substantially from the monthly salary stated in an employment contract.
How much income tax do employees pay in Japan?
National income-tax rates range from 5% to 45% of taxable income. Social-insurance contributions, local resident tax, deductions and family circumstances also affect the final take-home amount.
Does a foreign worker receive the same minimum wage?
Yes. Labour-law minimum wage rules apply regardless of nationality when the employment is covered by Japanese labour law. The relevant rate depends on the prefecture and, in some cases, the industry.
Founder and Editor-in-Chief of WageCentre, with a degree in finance and 15+ years of professional experience. He writes about salaries, taxes, labour markets, immigration and financial planning for relocation.
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