Tech Market In Japan
Japan’s ICT (Information and Communication Technology) market is evolving, and it’s expected to reach $473 billion by 2023. Cyber security, robotics, IoT, telecommunications, healthcare, and AI are among the top industries that use digital technologies. ICT giants like Toshiba, Fujitsu, Panasonic, and Sony make Japan one of the leading tech hubs in the world.
Each year top IT companies in Japan need more tech engineers and offer them more competitive remunerations. And the high level of software developer salary in Japan motivates hundreds of tech experts to consider working in this country. From this article, you’ll learn how much tech specialists earn and what impacts their salaries.
What the Average Software Engineer Salary in Japan Depends On
Like in any country of the world, the average salary of software engineer in Japan is calculated considering three main criteria:
- Your experience.
Information technologies are continuously evolving, which makes tech specialists embrace more instruments. Professionals learn new languages and frameworks, switch from programming to project management, etc. New skills are critical for staying competitive and joining projects you like. And for your potential employer, the years of relevant experience mean more dollars in your payroll.
- Company size.
Large international organizations and mid-sized companies typically offer more competitive salaries than small ones. They have more significant revenues and, thus, can afford to pay more. In addition, they offer KPI-based bonuses, health insurance, training programs, etc. These perks cover a significant part of your expenses. Also, big tech companies run professional training for free.
- Company location.
Tech companies in Osaka, Tokyo, Yokohama, Kyoto, and other large cities pay more. That’s because of the higher living cost there. Also, the availability of various IT talents is higher in big cities. So companies can hire best-fitting specialists and do it faster. Businesses are ready to pay more for the value a professional technician brings.
Suppose you entered the “data analyst salary Tokyo” query and found attractive vacancies. Now let’s check what waits for you after sending the resume.
Recruiting Processes
Here’s an example of a hiring procedure many IT companies in Japan follow.
- Initial screening.
In most cases, your CV will be pre-screened by HR tools. This helps recruiters check if the candidate fits the basic role requirements. Then HR specialists run a screening interview. They ask general questions about your qualifications, experience, and salary expectations. - Completing a test task.
After passing the first stage, recruiters may ask you to do a tech assignment. Some companies can give you a home task; others can ask you to complete an online test or arrange pair programming. The format may depend on your skills. - Technical interview.
A team lead usually runs the coding interview. Your future manager will give feedback on your test and explain project details. At this meeting, the team lead can also ask you to fulfill a brief programming task to check your approach and coding style. - Meeting with top managers.
You’ll meet the project manager, CTO, VP of engineering, Technical Director, or CEO at this interview. The participants and the format (online, on-site, hybrid) may change. This communication is the final stage of the assessment process.
However, the sequence, participants, and arrangements will differ from company to company. The cooperation format (remote/on-site, full/part-time) can also impact the hiring procedure.
Salaries of Various IT Specialists in Japan
Googling “IT job Japan” or “IT salary Japan” will show you many offers. To save you time, we’ve assembled the remunerations for key IT roles provided by Glassdoor. This will give you an idea of annual payroll levels in Japan.
| Description | Annual Salary, USD |
| Senior software engineer salary in Japan | $79,279 |
| Software engineer salary in Japan | $53,582 |
| Data analyst salary in Japan | $50,040 |
| System engineer salary in Japan | $47,138 |
| AI engineer salary in Japan | $44,671 |
| Data center engineer salary in Japan | $44,554 |
| IT engineer salary in Japan | $33,022 |
So the most high-payable positions are software engineers and data analysts, while IT engineers earn the least.
Consider Other Benefits
Payroll is often the top argument for applying for a job. However, candidates should also consider the following perks:
- Medical insurance.
In Japan, you can find several types of health insurance plans. As this country welcomes thousands of working foreigners each year, insurance organizations offer many options for expats. And international companies often cover individual health plans for their employees. This way, brands ensure you’ll get medical assistance in a foreign country. - Opportunity to buy stocks.
Investing in a successful company is a great idea, and many tech companies offer this opportunity to their employees. Special plans allow you to purchase stocks at discounts and do this through payroll deductions. Some companies also offer options — the right to buy stocks at a fixed price before a specific date. - Flexible schedule.
Most software developers are required to have shared business hours with other teams. However, some companies allow them to choose when to start and finish working. Some programmers can choose days when they work remotely. Others are allowed to set their own schedule as long as they meet deadlines. - Paid days off.
The Japanese law gives all full-time employees at least 10 days of paid vacation each year. And though this number grows each year, large companies grant more paid days off to technicians. They also offer paid sick leave as an additional benefit. That’s because, in Japan, employees aren’t given any days off when being ill.
Factors Impacting the IT Engineer
Salary in Japan
Here are a few more factors that recruiters consider when assessing your salary.
- Language proficiency.
Tech giants often use English as their corporate language. However, many international companies allow two languages — English and Japanese. Some corporations may require at least elementary knowledge of Japanese. So if you can speak English well, this can be not enough to get the position you want. - Specialization.
The numbers above demonstrate that your area of expertise impacts the payroll. Companies are ready to pay more if you know certain languages, frameworks, databases, and libraries. For instance, a JavaScript stack of MongoDB, Express.js, Vue.js, and Node.js (MEVN) is popular for creating web apps. And developers working with these technologies are paid more. - Education.
If you’re a software developer with 5+ years of experience, your formal educational qualifications may not matter much. But if you’re a mid-level specialist or try to get an entry-level position, a bachelor’s degree in Computer Science, Software Development, etc., will be a required minimum.
Summing up
The software engineer salary in Japan per month starts at $4,465, while seniors can earn around $6,607. All tech salaries in this country will depend on your education, qualifications, relevant experience, and proficiency in English and Japanese. Large multinational corporations with offices in big cities will pay more than small companies and startups.
Many ICT brands offer benefits like flexible working hours, paid days off, health insurance, fitness, and the opportunity to buy their stocks. So the answer to “How much can I earn in Japan?” the question will depend on your needs and preferences.