Working professionals in Japan least satisfied with salary among Asian countries surveyed
Japan, 04.03.2025 – Insights from the 2025 Hays Asia Salary Guide reveal that 58 per cent of working professionals in Japan were dissatisfied with their salary, the highest percentage among six locations surveyed in Asia which include Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand.
The survey conducted by Hays across six weeks in late 2024 gathered insights from 3,670 hiring managers regarding expected changes in salaries or rates of pay within their organisations. Additionally, 8,790 skilled professionals were queried about their remuneration expectations for the year, including anticipated changes, satisfaction with pay, and whether they felt their salaries aligned with their responsibilities.
In Asia: Modest raises amidst tough economic backdrop
Despite cautious pessimism about the broader economic climate, sentiments around salary are showing signs of improvement. Fewer professionals in Asia can expect to encounter no change in their salaries this year, down from 29 per cent in 2024 to 23 per cent. Professionals can also anticipate fewer pay cuts this year, down from seven per cent last year to six per cent in 2025.
Conversely, most employers in Asia (34 per cent) expect to provide salary increments of between 2.5 per cent to five per cent, consistent with last year’s rate. Notably, organisations are increasingly committed to rewarding key talent on a higher scale, with 10% of hiring managers planning to offer raises between 6 per cent and 10 per cent, nearly double from last year (six per cent).
More raises in Japan this year, still lagging behind others in Asia
While the outlook in Japan has improved from 2024, expectations for increments remain one of the lowest in Asia. Only 70 per cent of professionals in Japan can expect to receive a raise this year, ahead only with China at 56 per cent, and trailing behind Singapore (75 per cent) and Malaysia (80 per cent). Additionally, 26 per cent of professionals can expect no change to their salaries in 2025, while five per cent may face pay cuts from employers.
Professionals expressed pessimism regarding increments, with 42 per cent indicating they do not expect a raise. A significantly larger proportion of respondents (38 per cent) believe their salaries would not change in 2025, while four per cent expected their salaries to decrease.
“39 per cent of respondents in Japan indicated they would stay with their current employer because they were offered a good salary package,” said Grant Torrens, Managing Director at Hays Japan. “However, rising discontent regarding salaries means organisations will need to be vigilant about their remuneration policies in 2025.”
Unsatisfied with salary
Unfavourable expectations regarding increments appear to be leading to rising dissatisfaction among working professionals in Japan. 58 per cent of respondents shared that they were “dissatisfied” or “very dissatisfied” with their current earnings, the highest percentage in Asia behind Malaysia (45 per cent) and China (44 per cent). Additionally, 41 per cent felt that their current pay does not align with their responsibilities, just behind Singapore (42 per cent) and Malaysia, which leads in Asia at 47 per cent.
“33 per cent of working professionals in Japan will seek employment elsewhere in 2025 in search of better salaries and benefits packages. This is also currently the leading cause for organisations potentially losing valuable talent, superseding other factors,” said Grant.
This reflects a shift from last year, where only 23 per cent of professionals left their current roles due to a lack of pay. However, Japan is not alone in facing retention challenges caused by salary dissatisfaction. Professionals in Malaysia (56 per cent) were most likely to leave due to a desire for more pay in Asia, followed by Hong Kong (40 per cent) and China (40 per cent).
“With competing employers being the top reason organisations in Japan face skill shortages today, it is critical for leaders to revisit their current pay scales to ensure they remain competitive within the industry. Be sure to conduct benchmarking exercises and make the necessary adjustments to align salaries with market standards,” said Grant.
In Asia: Modest raises amidst tough economic backdrop
Despite cautious pessimism about the broader economic climate, sentiments around salary are showing signs of improvement. Fewer professionals in Asia can expect to encounter no change in their salaries this year, down from 29 per cent in 2024 to 23 per cent. Professionals can also anticipate fewer pay cuts this year, down from seven per cent last year to six per cent in 2025.
Conversely, most employers in Asia (34 per cent) expect to provide salary increments of between 2.5 per cent to five per cent, consistent with last year’s rate. Notably, organisations are increasingly committed to rewarding key talent on a higher scale, with 10% of hiring managers planning to offer raises between 6 per cent and 10 per cent, nearly double from last year (six per cent).
More raises in Japan this year, still lagging behind others in Asia
While the outlook in Japan has improved from 2024, expectations for increments remain one of the lowest in Asia. Only 70 per cent of professionals in Japan can expect to receive a raise this year, ahead only with China at 56 per cent, and trailing behind Singapore (75 per cent) and Malaysia (80 per cent). Additionally, 26 per cent of professionals can expect no change to their salaries in 2025, while five per cent may face pay cuts from employers.
Professionals expressed pessimism regarding increments, with 42 per cent indicating they do not expect a raise. A significantly larger proportion of respondents (38 per cent) believe their salaries would not change in 2025, while four per cent expected their salaries to decrease.
“39 per cent of respondents in Japan indicated they would stay with their current employer because they were offered a good salary package,” said Grant Torrens, Managing Director at Hays Japan. “However, rising discontent regarding salaries means organisations will need to be vigilant about their remuneration policies in 2025.”
Unsatisfied with salary
Unfavourable expectations regarding increments appear to be leading to rising dissatisfaction among working professionals in Japan. 58 per cent of respondents shared that they were “dissatisfied” or “very dissatisfied” with their current earnings, the highest percentage in Asia behind Malaysia (45 per cent) and China (44 per cent). Additionally, 41 per cent felt that their current pay does not align with their responsibilities, just behind Singapore (42 per cent) and Malaysia, which leads in Asia at 47 per cent.
“33 per cent of working professionals in Japan will seek employment elsewhere in 2025 in search of better salaries and benefits packages. This is also currently the leading cause for organisations potentially losing valuable talent, superseding other factors,” said Grant.
This reflects a shift from last year, where only 23 per cent of professionals left their current roles due to a lack of pay. However, Japan is not alone in facing retention challenges caused by salary dissatisfaction. Professionals in Malaysia (56 per cent) were most likely to leave due to a desire for more pay in Asia, followed by Hong Kong (40 per cent) and China (40 per cent).
“With competing employers being the top reason organisations in Japan face skill shortages today, it is critical for leaders to revisit their current pay scales to ensure they remain competitive within the industry. Be sure to conduct benchmarking exercises and make the necessary adjustments to align salaries with market standards,” said Grant.
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 workforce solutions and recruitment, such as RPO and MSP. 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 2024, the Group employed over 11,100 staff operating from 236 offices in 33 countries. For the year ended 30 June 2024:
– the Group reported net fees of £1,113.6 million and operating profit of £105.1 million.
– the Group placed around 57,700 candidates into permanent jobs and around 225,000 people into temporary roles.
– 13% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 35% in Rest of World (RoW).
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees.
– Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest.
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, 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.