What Is the Average Starting Salary in Japan? University, High School, and Industry Benchmarks
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Authors: Shusaku Yosa
As you approach starting work, you may wonder "what is the average starting salary?" or "what is the benchmark for the industry I am targeting?" Starting salaries differ by education level, company size, industry, and region, and have been rising in recent years. Based on the Ministry of Health, Labour and Welfare's latest survey (the FY2024 Basic Survey on Wage Structure), this article explains averages by education level such as university, high school, and graduate school, industry benchmarks, the take-home amount of a starting salary, and recent salary-hike trends.
According to the MHLW's FY2024 Basic Survey on Wage Structure, the average starting salary for university graduates was 248,300 yen. Starting salaries tend to be higher with more education, with a gap of about 50,000 yen between high school and university graduates, and about 40,000 yen between university and master's graduates.
A starting salary is the first salary a new employee receives after graduating and joining a company. Statistically, the starting salary refers to "scheduled cash earnings," which includes base pay plus allowances such as position allowances, but excludes overtime pay (excess-labor pay) and commuting allowances. Note that the figure listed in job postings is the "gross" amount, before taxes and social insurance are deducted.
The average starting salaries by education level are as follows.
All education levels exceeded the previous year, with increases of about 5.7% for high school graduates, about 4.6% for university graduates, and about 4.1% for master's graduates. High school graduates in particular showed the highest growth among all education levels, reflecting intensifying competition to secure such talent.
By gender, men's starting salaries tend to be slightly higher across all education levels. The gender gap is relatively larger among master's graduates and smaller among university and high school graduates. That said, in recent years the hiring of highly educated women has advanced, and women's starting salaries have grown notably, especially in technical and research roles.
Starting salaries also vary by the size of the company and the location of the workplace. Consider these factors in addition to education level when gauging the benchmark.
By company size, average starting salaries tend to be higher at larger companies. The gap between the highest-paying large companies and the lowest-paying small companies is about 30,000 yen. That said, even small and medium-sized companies in growth industries or highly specialized fields may offer starting salaries above those of large companies.
By prefecture, starting salaries tend to be higher in urban areas and regions where high-wage industries are concentrated. Because starting salary averages are tabulated by the location of the workplace—such as factories or research centers—rather than the head office, averages can be pushed up in prefectures with many manufacturing bases. The prefecture with the lowest starting salary was Tottori, at about 219,400 yen.
Looking at university graduates' starting salaries by industry, industries requiring specialization or technical skills tend to pay more. Here are the main industry benchmarks from the FY2024 survey.
Information and communications, which includes IT and telecom, ranks among the top overall. On the other hand, since the gap between industries is only a few tens of thousands of yen, it is important to choose an industry based not only on the starting salary but also on the pace of raises and future career path.
The starting salary listed in job postings is the "gross (total payment)," which differs from the "take-home" actually deposited into your account. Because income tax and social insurance are deducted from gross, the take-home of a starting salary is about 80% of gross as a guideline.
For example, with a university graduate's average gross of 248,000 yen, the take-home is roughly 200,000–210,000 yen. If you would like a more detailed explanation of the difference between gross and take-home, see What Is Annual Income? Take-Home, Gross, and Net Income Explained as well.
One point to keep in mind about starting salaries is that resident tax is calculated based on the previous year's income, so it is not deducted in your first year of work. As a result, your take-home ratio is relatively high in the first year. Also, your first month's salary is often paid before social insurance premiums are withheld, so the take-home may feel larger; be aware that it decreases from the following month as health insurance, employees' pension, and so on are deducted.
In recent years, starting salaries have been rising continuously. The FY2024 survey showed increases of 4–6% year-on-year across all education levels, reflecting companies' moves to raise starting pay.
According to a private survey, about 54% of companies plan to raise starting salaries in their hiring of 2026 graduates, up from the previous year. Behind this are responses to rising prices and intensifying hiring competition due to labor shortages. Because a higher starting salary also affects students' preferences, this trend is expected to continue.
In the FY2024 survey, the average starting salary was about 248,000 yen for university graduates, about 198,000 yen for high school graduates, and about 287,000 yen for master's graduates. Salaries tend to be higher with more education and at larger companies, and by industry, real estate and information and communications rank near the top. Since the figures in job postings are gross, remember that the actual take-home is about 80% (roughly 200,000–210,000 yen for university graduates). As starting salaries have been rising in recent years, it is important to check the latest data and consider your employer based not only on pay but also on career prospects.
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