Japan's Private Sector Salaries Hit Record High

The average annual salary of private sector employees in Japan has reached a record high, according to a recent survey by the National Tax Agency. The average compensation, including base pay, allowances, and bonuses, was 4.87 million yen (approximately 42.85 million won) in 2025.

This represents a 1.9% increase from the previous year, marking the second consecutive year with record-breaking salaries. The trend of rising average salaries has been ongoing for five consecutive years.

The survey also revealed that the average bonus was 749,000 yen (approximately 6.59 million won), a slight increase of 3,000 yen from the previous year.

Interestingly, wage hikes contributed to the salary growth, with increases observed across all demographics, regardless of gender or employment status as regular or non-regular workers.