What is the average salary in 【Tokyo】? We have put together a complete national comparison by age and by occupation.

What is the average salary in 【Tokyo】? We have put together a complete national comparison by age and by occupation.

2021-03-17

Japanese Culture & Customs

 

 

Average Salary in Tokyo

Tokyo is the capital and most populous prefecture of Japan, and is the center of the country’s politics, culture, and economy. It also has the highest average annual salary of all the 47 prefectures. Let’s take a closer look at the numbers to see just how high the average salary in Tokyo is compared to the rest.

 

・Tokyo Average vs. National Average

The following table shows the average salary in Tokyo for people working in companies or organizations with at least 10 employees. The overall annual average is 6.2 million yen. Men generally earn more than women, with a gender pay gap of 2.08 million yen annually. The overall average bonus is 1.3 million yen annually.

 

2019 Tokyo Ave. Salary Overall Men Women
Annual (yen) 6,204,000 6,921,000 4,839,000
Monthly (yen) 408,000 450,000 328,000
Bonus (yen) 1,307,000 1,520,000 901,000
Average age (years) 42.5 43.7 40.1
Working population 3.67 million 2.41 million 1.26 million

 

For comparison, the following table shows the average for all of Japan. The national average annual salary is 4.89 million yen, which is 1.3 million yen lower than the Tokyo average. The driving force behind the high wages in Tokyo is its very high population. This population concentration leads to a more diverse workforce, and a larger market for businesses, allowing them to pay higher wages. Furthermore, many big corporations that pay high wages to a large number of employees are based in Tokyo, driving the average salary up.

 

2019 National Ave. Salary Overall Men Women
Annual (yen) 4,892,000 5,477,000 3,727,000
Monthly (yen) 333,000 370,000 260,000
Bonus (yen) 893,000 1,033,000 612,000
Average Age (years) 42.3 43.1 40.7
Working population 22.41 million 14.93 million 7.48 million

 

Tokyo Average Annual Salary by Gender

The following graph shows the average annual salary in Tokyo by gender for the past 15 years. While there is a year-to-year fluctuation, there is a general trend towards higher wages, with a slight increase from 2005 to 2019 for both genders. For men, the 2005 value was 6.725 million yen, while the 2019 value was 6.921 million yen. The increase is slightly larger for women, going from 4.320 million yen in 2005 to 4.839 million yen in 2019. This indicates that the gender wage gap in Tokyo is narrowing.

 

The graph also shows a significant drop in annual salary starting from 2008 before bottoming out in 2010, likely a result of the 2008 global financial crisis. It then shifted to an increasing trend until 2015, before generally levelling off for both men and women. This indicates that wages in Tokyo have been more or less static for the past 5 years.

 

 

Tokyo Average Annual Salary by Age Group

The following graph shows the 2019 average annual salary in Tokyo by age group. We also give an analysis of each age group below.

 

 

・Average Annual Salary for Workers in their 20s

The average annual salary for workers in their early 20s is 3.597 million yen for men and 3.351 million yen for women. The gender wage gap is at its narrowest in this age group. For workers in their late 20s, the value is 4.782 million yen for men and 4.184 million yen for women. This salary for Tokyo men in their late 20s is very close to the national overall average of 4.892 million yen. For this age group, the gender wage gap increases to around 600,000 yen. This can be attributed to women in their late 20s getting married and having children, and those who choose to continue their careers usually have to work less compared to men, resulting in lower salaries.

 

・Average Annual Salary for Workers in their 30s

The average annual salary for men in their early 30s is 5.884 million yen, more than 1 million yen higher than that of men in their late 20s. This increase translates to nearly 200,000 yen a month, a significant rise in the monthly pay. For women in their early 30s, the value is 4.675 million yen, showing a slower increase compared to the men and giving a more pronounced gender wage gap. The overall average annual salary for this age group is 5.425 million yen, which is fairly sufficient for people who are starting a family. For the late 30s, the yearly pay becomes 6.787 million yen for men (nearly 1 million higher from the previous age group) and 5.005 million yen for women.

 

・Average Annual Salary for Workers in their 40s

From the late 30s to the early 40s age group, the average annual salary for men increases to 7.502 million yen, but the rate of increase starts to slow down. The increase is even less for women, with an annual salary of 5.495 million yen. Men in their late 40s earn 8.086 million a year on average, an increase of around 500,000 yen from the previous age group, while women’s wages increase by a mere 20,000 yen to 5.519 million.

 

・Average Annual Salary for Workers in their 50s

The average annual salary for men peaks in the early 50s, going up to 8.829 million yen. From the late 50s, the average drops slightly to 8.763 million yen, and decreases rapidly from the 60s and older. The same pattern can be seen for women, peaking at 5.767 million yen in the early 50s then falling to 5.480 million yen in the late 50s, decreasing further as the age increases. The late 50s age group has the largest gender wage gap, a difference of 3.284 million yen.

 

Average Entry Level Salary in Tokyo

・Differences between men and women

The average entry level salary in Tokyo is higher than the national average for both men and women in all educational levels. For university graduates, the average monthly salary is 224,000 yen for men, slightly higher than the 216,000 yen salary for women. This is not the case for the other educational levels, with women having a slightly higher entry level salary than men. Women in Tokyo with master’s degrees earn 251,000 yen a month on average, 2,000 yen higher than the 249,000 yen for men in the same category, and 10,000 yen higher than the national average. This can probably be attributed to women choosing entry level jobs with higher wages compared to men.

・Differences between educational levels

As expected, the average entry level salary increases with higher educational attainment. A high school graduate in Tokyo earns 178,000 yen a month on average, compared with 201,000 yen for a junior or technical college graduate, 221,000 yen for a university graduate, and 249,000 yen for a master’s degree holder (increasing in increments of around 20,000 yen for every educational level).

 

 

Tokyo Average Annual Salary by Industry

The table below shows the average annual salary in Tokyo by industry for the year 2019. The industry with the highest average is Mining and Quarrying, at 8.652 million yen. Other industries with high average salaries include Finance and Insurance, as well as Education and Learning Support, both crossing the 7 million yen mark. Construction (6.646 million yen) and Scientific Research/Professional/Technical Services (6.967 million yen) are also on the high side, exceeding the Tokyo overall average of 6.204 million yen. Industries that are on par with the overall average include: Electricity, Gas, Heat Supply and Water; Information and Communications; and Wholesale and Retail Trade.

 

Doctors and dentists are known for earning high salaries, and even nurses are quite well-compensated, but the Medical, Health Care, Welfare industry has a relatively low average annual salary at 4.651 million yen. This is probably due to the low wages of hospital staff and welfare workers pulling the industry average down to a value even lower than the overall national average of 4.892 million yen. The industry with the lowest average at 4.107 million yen is Accommodations/Food and Beverage.

 

Industry Average annual salary
Mining and Quarrying of Stone and Gravel 8,652,000 yen
Construction 6,646,000 yen
Manufacturing 5,987,000 yen
Electricity, Gas, Heat Supply and Water 6,094,000 yen
Information and Communications 6,075,000 yen
Transport and Postal Activities 5,408,000 yen
Wholesale and Retail Trade 6,038,000 yen
Finance and Insurance 7,095,000 yen
Real Estate and Goods Rental/Leasing 5,961,000 yen
Scientific Research, Professional, Technical 6,967,000 yen
Accommodations/Food and Beverage 4,107,000 yen
Living-related and Amusement Services 4,462,000 yen
Education, Learning support 7,750,000 yen
Medical, Health Care, Welfare 4,651,000 yen
Compound Services 5,556,000 yen
Services, n.e.c. 4,470,000 yen

 

Source: Basic Survey on Wage Structure (MHLW)

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