The Pulse of Recruitment report:
Salary raises in Japan surpass initial projections amidst conservative Asia outlook
- Only 62 per cent of professionals across Asia have received or still expect a pay raise in 2025.
- 65 per cent of professionals in Japan have already received or are still expecting an increment, surpassing initial projections in late 2024.
- Salary packages remain the top priority among professionals in Japan, with 45 per cent of professionals remaining with their current employers for that reason.
Japan, October 1, 2025 — Hays Asia has released its latest Pulse of Recruitment report, offering fresh insights into salary expectations and workforce sentiment across six key Asian markets: China, Hong Kong SAR, Japan, Singapore, Malaysia, and Thailand. The findings reveal a growing sense of caution among both employers and professionals, with salary optimism notably declining across the region.
Across Asia: Salary expectations have dipped
Expectations around salary increments from employees have declined compared to projections made in late 2024. At that time, 75 per cent of professionals were confident they would receive a raise. However, by June 2025, only 40 per cent had seen an increase in their salary, and just 22 per cent still expect one before the year ends.
At the same time, salary reductions are becoming more common. Six per cent of respondents in Asia reported experiencing a pay cut in 2025, double the rate anticipated last year. This trend may continue, with 12 per cent of organisations indicating plans to reduce salaries in the second half of the year.
Japan stands as the exception to this trend, with 65 per cent of professionals locally having already received a raise, or still expecting to receive one this year, surpassing last year’s projections of 58 per cent. Optimism for raises in Japan currently eclipse Hong Kong (64 per cent) and China (54 per cent), while trailing behind Singapore (69 per cent) and Malaysia (79 per cent). Professionals in Thailand were most optimistic regarding their raises at 87 per cent.
Among the markets we surveyed, organisations in Japan were among the least likely to implement salary reductions, with only four per cent of respondents expecting salaries to decrease in the remainder of 2025, lower than Thailand (five per cent) and Hong Kong (seven per cent). Organisations in China were most likely to implement salary reductions, at 18 per cent.
“The commitment to preserving salary increments amid a recovering global economy reflects the strong intent of organisations to retain skilled talent,” said Grant Torrens, Managing Director of Hays Japan.
Salary is king, but traditional values remain important
While salary continues to be a key consideration, work-life balance remains the leading reason professionals across Asia choose to stay with their current employers. Among those not planning to change jobs, 41 per cent cited work-life balance as their primary motivator, an increase from 36 per cent in late 2024. Salary followed closely at 36 per cent.
39 per cent of professionals in Japan cited good work-life balance as a reason for staying, mirroring similar results when polled in late 2024. This was followed by having a good fit with managers and colleagues (42 per cent), feeling alignment with the company’s values and culture (43 per cent) and salary packages (45 per cent).
Notably, job security has emerged as a growing concern. The proportion of professionals in Japan who value job security rose from eight per cent in 2024 to 17 per cent in 2025. “Declining job security is particularly evident in Japan, where 36 per cent of professionals surveyed reported feeling insecure in their roles, a figure second only to China,” Grant added.
“But while concerns over job stability may prompt some professionals to seek new opportunities, it is not the primary reason they choose to stay. Retention today is driven by a clear set of priorities. Salary remains paramount, and organisations are responding accordingly to keep their workforce satisfied.”
“What endures are the traditional values: team fit, cultural alignment, and a sense of belonging; qualities that many organisations in Japan already prioritise. As companies refine their Employer Value Propositions, it’s essential they continue to nurture these core elements.”
“For professionals exploring their next career move, it’s critical to clearly define what matters most, whether that’s compensation, cultural fit, or long-term stability. Having a firm grasp of your priorities not only empowers smarter career decisions but also brings clarity and confidence to the path ahead.”
A copy of the Pulse of Recruitment report is available here.
Contact
Hays Japan Marketing Team
T: 03-4565-5953
E: Natsuko.Arai@hays.co.jp
About Hays Japan
Hays Specialist Recruitment Japan KK ("Hays Japan"), established in Tokyo in 2001, is one of the largest foreign recruitment companies in Japan with three offices across the country (Tokyo Head Office, Osaka and Yokohama).
At Hays Japan, our experts provide professional services across the private sector, dealing in permanent positions, contract roles, recruitment process outsourcing (RPO), Managed Service Programmes (MSP) and IT solutions in the following 13 specialisms: Accountancy & Finance, Banking & Financial Services, Engineering, Marketing & Digital, Human Resources, Insurance, Legal, Life Sciences, Office Professionals, Property, Sales & Marketing, Supply Chain and Technology. This ensures a highly focused, fully tailored specialist recruitment service, enabling us to power the future of work by serving thousands of companies and candidates in Japan. Hays Japan is recognised as a Great Place to Work® by the esteemed Great Place to Work® Institute Japan, the global authority on workplace culture. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand.
About Hays
Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions. The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2025, the Group employed over 9,500 staff operating from 207 offices in 31 countries. For the year ended 30 June 2025:
- The Group reported net fees of £972.4 million and operating profit of £45.6 million.
- The Group placed around 46,400 candidates into permanent jobs and around 211,500 people into temporary roles.
- 12% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 36% in Rest of World (RoW).
- The temporary placement business represented 62% of net fees and the permanent placement business represented 38% of net fees.
- Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%), Engineering (11%) and Construction & Property (11%), are the next largest.
- Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, China, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.