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Overview of Salary Trends in Japan

Recent analysis conducted by DONUTS through its cloud-based ERP system "Jobcan" has shed light on the salary trends in Japan for April 2025. The data indicates a growth in average salaries, which increased by 1.4% year-on-year, affirming the ongoing wage hike trend across the nation. However, it also uncovers significant gender pay disparities, which remain a persistent issue in the labor market.

Salary Increases and Average Earnings

According to the findings, the average salary in April 2025 stands at 311,036 yen, representing an increase of 4,223 yen compared to the previous year. This salary increment reflects the broader economic recovery in Japan, as companies adapt their compensation structures to tackle rising inflation and the critical shortage of labor. Such wage increases can be seen as a response to the continuous demand for skillful professionals and the necessity to retain talent amid fierce competition.

Persistent Gender Wage Gap

Despite the overall increase in wages, the gender pay gap remains starkly evident. In April 2025, the average salary for men was reported at 394,770 yen, whereas women earned only 231,642 yen—resulting in a considerable gap of 163,128 yen. This discrepancy underscores the long-standing challenges of gender inequality within the workplace, where women's earnings approximately represent only 58.7% of their male counterparts.

Nevertheless, encouraging signs of change are visible, particularly among women aged 40 and older. The average salary for this demographic rose by over 3% year-on-year, indicating promising progress towards reducing the wage gap. Specifically, women aged 45-49 saw an increase of 5.3%, while those aged 55-59 experienced a 5.0% rise, highlighting a potential shift in employer attitudes towards recognizing the value and contributions of experienced female employees.

Wage Trends by Company Size

The survey also revealed notable variations in salary increases based on company size. Companies with 100-299 employees exhibited an outstanding salary growth of 6.8% year-on-year. This trend suggests that medium-sized firms are actively investing in higher wages to attract and retain skilled workers, a response likely driven by the tightening labor market. Conversely, smaller enterprises with 30-99 employees saw a decline in average salaries, with a year-on-year drop of 2.2%, indicating a widening gap in wage growth potential across different business scales.

Summary and Future Implications

In conclusion, the recent salary trend analysis by DONUTS highlights a complex landscape of economic growth juxtaposed with ongoing challenges. While there are signs of wage improvement, particularly for older women, the persistent gender pay gap and the emerging trend of wage polarization based on company size present significant hurdles to overcome.

Mizuki Ishiyama, Director of the Jobcan Division at DONUTS, emphasized the importance of continued focus on equitable salary structures. He stated that the improvements observed in middle-aged and senior women's wages mark a pivotal moment for diversity and inclusion in Japanese organizations. As companies strive towards fairer wage practices, Jobcan remains committed to providing data-driven insights to support transparent human resource management and facilitate the broader goals of productivity and sustainable growth across the nation.

About Jobcan

Jobcan is a cloud-based ERP system that enhances back-office operations. It encompasses a comprehensive suite of services, including attendance management, payroll calculation, and HR management, serving businesses across all stages of development. With over 250,000 implementations and more than 3 million paid IDs, Jobcan is at the forefront of revolutionizing how organizations manage their workforce effectively.

For more information, visit Jobcan.

About DONUTS

Founded in 2007, DONUTS is a Tokyo-based company specializing in cloud services, gaming, and various media projects. Their commitment to innovation and efficiency drives their diverse portfolio. To learn more about DONUTS, visit DONUTS.