In Japan and overseas, even for the same job, there can be differences in salary. For those thinking of moving from overseas to Japan to find work, you want to be paid a decent salary to live in a country you are not familiar with. So, how much of a difference is there actually in the salary for the same job?
In this article, we will explain the specific differences in salary for the same job in Japan and overseas, the reasons for these differences, and the key points for getting a stable salary in Japan. We will also be discussing expenditure as well as salary, so please refer to this if you are planning to live in Japan.
If you are looking for a job in Japan with a high salary in the same occupation, we recommend the foreigner-focused recruitment agency “G Talent”. The professionals at this agency will handle all the complicated salary and condition negotiations on your behalf, so you will have a better chance of finding a job in the same occupation with a high salary.
Contents
- 1 How much difference is there in salary between the same occupation in Japan and overseas?
- 2 Why are there big differences in salaries between Japan and other countries, even for the same job?
- 3 Points for comparing salaries for the same job in Japan and overseas
- 4 What you need to earn a stable salary in Japan
- 5 There can be differences in salary between overseas and Japan, even for the same job
How much difference is there in salary between the same occupation in Japan and overseas?
There are cases where salaries differ between overseas and Japan, even for the same job type. As the companies that are increasing their market share differ from country to country, there may be significant differences in each region. From here, we will compare the average salaries in Japan and overseas by industry.
Differences in salary for the same job type: Japan vs. United States
The United States is a country that always comes out on top in the GDP rankings published every year, and there are many companies there that offer services that are also familiar in Japan. The differences in salary for the same job type in the United States and Japan are as follows.
[Average salary by occupation]
| Occupation | United States | Japan |
| IT | 10-12 million yen | 4.36 million yen |
| Consulting | 18-19 million yen | 5.85 million yen |
| Finance | 9.6 million yen | 4.54 million yen |
| Manufacturer | 7.9 million yen | 4.53 million yen |
In the IT industry, there is a difference in salary of more than double that of Japan, even for the same job type. As there are many large companies such as GAFA concentrated in the US, it can be assumed that salaries in the IT industry are high. There is also a difference in salary of 1.5 to 3 times that of Japan in industries other than IT, and overall salaries are higher in the US.
Reference: 海外のエンジニアの年収は？年収を増やす方法を解説／TECHのススメ
Differences in salary for the same job type: Japan vs. United Kingdom
The differences in salary for the same job in the UK and Japan are as follows.
[Average salary by occupation]
| Occupation | United Kingdom | Japan |
| IT | 4.8 million yen | 4.36 million yen |
| Consulting | 3.73 million yen | 5.85 million yen |
| Finance | 8.5 million yen | 4.54 million yen |
| Manufacturer | 3.28 million yen | 4.53 million yen |
Compared to the US, salaries are generally lower. Compared to Japan, Japan is inferior in the IT and finance industries, but Japan pays slightly higher salaries in the manufacturing and consulting industries.
Reference: あの職業は年収いくら？英国の給与事情／COSMOPOLITAN
Differences in salary for the same job: Japan vs. China
China, which has the world's largest population, is a country with lower prices than Japan. However, it can be seen that in recent years, salaries in China are relatively higher than in Japan.
[Average salary by occupation]
| Occupation | China | Japan |
| IT | 14 million yen | 4.36 million yen |
| Consulting | 11 million yen | 5.85 million yen |
| Finance | 4.8 million yen | 4.54 million yen |
| Manufacturer | 4.87 million yen | 4.53 million yen |
In the IT and consulting industries, salaries are higher than in Japan. Some companies even pay higher salaries than in the US, where there are many major IT companies, and the range of salaries varies widely from company to company.
Reference: 中華IT最新事情／Hatena Blog
Why are there big differences in salaries between Japan and other countries, even for the same job?
Why is there a difference in salary between the same job in Japan and overseas? The following three reasons can be cited for the large difference in salary between the same job in Japan and overseas.
- Differences in prices
- The existence of large companies
- The size of investment appetite
Differences in prices
Just as minimum wages differ from region to region in Japan, prices also differ from country to country, and the higher the prices, the higher the salaries tend to be. For this reason, even if salaries seem high compared to Japan, when you take into account essential living expenses such as rent and food, the standard of living may not be that different.
Reference: 日本とアメリカの賃金の差／スクールナビ
The existence of large companies
There are a number of large companies that are so successful that they have a global market share, and their business performance is also strong. In order for these large companies to grow further, they need to acquire talented people. It is thought that they pay high salaries to lure talented people away from other companies, and as a result, salaries in the industry as a whole are raised.
Reference: アメリカ巨大IT企業の給料がケタ違いに高い理由／東洋経済オンライン
The size of investment appetite
In Europe and America, the performance-based evaluation system is the norm, with a focus on results and contribution rather than on the person. There is a tendency to focus on how much an employee contributes to the company rather than on their skills, abilities or personality. Therefore, the higher the contribution to the company, the greater the return, and companies that want to improve their performance are willing to invest in people who make a high contribution to the company.
Points for comparing salaries for the same job in Japan and overseas
If you only look at salaries when comparing salaries in Japan and overseas, you may miss out on a good opportunity. If you are looking at the same job, you will be particularly concerned about the difference in salary, but it is important to compare from a different perspective. The following are two points to note when comparing salaries for the same job in Japan and overseas.
- If you come to Japan from overseas, your salary will not necessarily decrease
- Even if your salary decreases, it doesn't necessarily mean your standard of living will also decrease
If you come to Japan from overseas, your salary will not necessarily decrease
When comparing salaries for the same job in Japan and overseas, salaries in Japan tend to be slightly lower, but this does not necessarily mean that salaries will decrease for all jobs.
Depending on the company, there are also cases where salaries are higher than overseas, and in some cases, you may be able to work under the same conditions as your standard of living overseas, taking into account your career and skills to date. The higher your career and skills, the more likely you will be to find a job in the same field with better conditions, and the more smoothly you will be able to negotiate your terms and conditions.
Reference: 年収を上げる方法9選！転職しない場合とする場合に分けて、年収を上げるコツを紹介します！／Geekly Media
Even if your salary decreases, it doesn't necessarily mean your standard of living will also decrease
If you compare salaries for the same job in Japan and overseas, there is a high possibility that your annual salary in Japan will decrease. However, if you take into account factors such as the cost of living and rent, even if your salary decreases, it does not necessarily mean that your standard of living will decrease. Depending on the area where you base your life, you may be able to live a rich life even if your salary does not reach the level of overseas salaries. The reason for this is the difference in prices between Japan and overseas.
Differences in prices between Japan and other countries
No matter how high your salary is, if prices are high, you won't be able to live a comfortable life. The differences in the consumer price index, which is an indicator of fluctuations in goods and services in Japan and major countries overseas, are as follows.
[Consumer Price Index for Major Countries]
| 2022年 | June | July | August | September | October |
| Japan | 2.4％ | 2.6％ | 3.0％ | 3.0％ | 3.7％ |
| United States | 9.1％ | 8.5％ | 8.3％ | 8.2％ | 7.7％ |
| United Kingdom | 9.4％ | 10.1％ | 9.9％ | 10.1％ | － |
| China | 2.5％ | 2.7％ | 2.5％ | 2.8％ | 2.1％ |
Reference: 消費者物価指数 / 2020年基準消費者物価指数 / 月報／e-Stat
If you look at the consumer price index for the US and UK, where salaries are higher than in Japan, you can see that the rate of price increase is higher than in Japan. Because salaries are higher, prices are also higher, so it can be said that even if you work in Japan, your standard of living is unlikely to decrease.
Comparison of rent in Japan and overseas
Just as rent varies from region to region in any country, there are also big differences in rent between overseas and Japan. Rent accounts for a large proportion of monthly expenditure, so it can also affect the standard of living.
Assuming you rent a 70m2 house, we will introduce the world's rent prices in a ranking format.
- Singapore: 253,190 yen
- London: 194,110 yen
- New York: 179,690 yen
- Hong Kong: 179,400 yen
- Tokyo: 151,000 yen
Japan is also included in the ranking of rent prices, but there are many areas in Tokyo where rent is below 100,000 yen. In order to maintain your standard of living, it is important to keep your monthly rent as low as possible.
Reference: 日本の家賃は世界で何位？ 世界の家賃相場をわかりやすく「図」で比較！／楽待
What you need to earn a stable salary in Japan
Japan is a country where salaries are relatively low compared to the rest of the world, so salaries for the same job are likely to be lower. For this reason, many people may find it difficult to take the plunge and find a job in Japan. However, it may be a waste to give up on working in Japan just because of the salary.
To get a stable salary for the same job in Japan, be aware of the following five points.
- Choose a global company with a relatively high salary
- Hone skills that you can use at work
- Aim to obtain qualifications
- Improve your language skills
- Build a career in Japan
Choose a global company with a relatively high salary
Many global companies adopt a performance-based system, so compared to Japanese companies, many of them have a higher average salary. Furthermore, global companies that operate overseas are always looking for talented people. In order to secure talented people, many companies also set their salaries high.
If it is difficult to find a new job at a global company, we recommend using a job-placement service that specializes in global companies. If you are new to job-hunting in Japan, consider using a job-placement agency that can help you with things like visa acquisition and the selection process.
Reference: 外資系企業の年収は日系企業の約2倍！その理由を徹底解説／35ish
Hone skills that you can use at work
In order to earn a stable income in Japan, it is also important to improve your expertise and hone your knowledge and skills in line with the times. You must never be satisfied with the status quo, and you must always remember to keep learning.
By becoming a highly sought-after employee, you will also be able to move up to a higher position. If it is a field you are good at, you will be able to absorb information quickly, and you may be able to improve your expertise more efficiently.
Reference: 100万人超の職歴分析で判明「年収が高くなる人」のスキル20選／JOB PICKS
Aim to obtain qualifications
As well as differentiating yourself from others with your knowledge and skills, acquiring qualifications that are highly relevant to your work is also key to earning a stable income. However, qualifications that anyone can obtain are not very meaningful.
It would be good to have a different perspective from others, such as in fields that other people are not looking at or in qualifications that are difficult to obtain. Even if it is a private qualification in Japan, if there is one that you can use in your work, it is worth studying.
Reference: 【今が狙い目】学歴不問で年収アップに効く「スゴい資格」ベスト1／ DIAMOND online
Improve your language skills
The bigger the company, the higher the average annual salary and the easier it is to earn a stable income, but the bigger the company, the more language skills are required. In particular, in companies that have a lot of communication with overseas, the higher your language skills, the more highly you will be evaluated, and it is not uncommon for this to be reflected in your income. In addition to basic English, learning a language that is closely related to your work will be useful.
In addition, there will be many opportunities to communicate in Japanese within the company. It is a good idea to make sure you have a good grasp of Japanese so that you can respond smoothly.
Reference: 大卒外国人の採用、「高い日本語力」要求が壁に／日本経済新聞
Build a career in Japan
In order to stabilize your income in Japan, it may be difficult without a career in Japan. You could decide on a job that will allow you to live comfortably, and live in Japan while building up your career until the right opportunity comes along.
If you have the expertise to be an immediate asset, making use of the know-how you have cultivated up to this point, there is a high possibility that you will be able to work at the company and under the conditions you want. First of all, taking your time and carefully building up your experience may be the quickest way to stabilize your income in Japan.
There can be differences in salary between overseas and Japan, even for the same job
There can be differences in salary between overseas and Japan, even for the same job, for the three reasons we have introduced here. However, in many cases, living costs are higher overseas than in Japan, so even if your salary decreases in Japan, it does not necessarily mean that your standard of living will decrease. It is important to have a broad perspective, rather than just focusing on salary and other conditions.
If you are thinking about changing jobs or finding a job in Japan, we recommend “G Talent” , a recruitment agency specializing in foreign IT personnel. You can have a job that suits you chosen based on your experience and skills to date, and the professionals at the recruitment agency will negotiate your salary and conditions on your behalf. You can also receive various support, such as support for the selection process, visa acquisition, and Japanese language, so it is also reassuring for those who are looking for a job in Japan for the first time.
