"Is My Salary Lower Than the Market Rate?" — Why Japanese People Should Investigate Their Salaries, Inspired by Germany's "Individual Wage Disparity"

Every month, I receive my pay slip.

It lists the basic salary, overtime pay, various allowances, taxes, social insurance premiums, and the final take-home amount.

However, there is a number that is never written on that pay slip.

**"How much are people doing almost the same job as you earning in the world?"** is that number.

This issue was highlighted by the German regional newspaper "Kreiszeitung."

The theme is the gender pay gap, but the article emphasizes more than just the national average.

It is about the more personal "individual wage disparity."

In other words, it is the difference between the salary you currently receive and the salary that someone with similar experience, skills, and job responsibilities can receive in the labor market.

For company employees, this might be the truly important aspect.

The Question Raised by the German Article: "How Much Are You Losing?"

The original article introduces the gender pay gap in Germany as 18%.

However, according to the latest 2025 statistics from the German Federal Statistical Office, the average hourly wage for women is 16% lower than that for men. In Western Germany and Berlin, it is 17%, while in Eastern Germany, it is 5%, indicating significant regional differences.

The important point is that even when looking at the figure "women's salaries are on average 16% lower than men's," it does not resonate much on a personal level.

The average includes various conditions such as occupation, working hours, position, industry, and age.

However, if you look at job listings in the same occupation, with the same years of experience, in the same region, and find that your current annual income is 5 million yen while similar listings are offering 6 million yen, the situation changes.

At that moment, the "wage disparity" that was just a statistic becomes a concrete issue of 1 million yen for yourself.

The idea proposed by the original article is simple.

You should investigate not only the disparities in society as a whole but also your own salary differences.

This is likely a very important perspective for people working in Japan as well.

In Japan, Women Earn 76.6 Compared to Men's 100

Looking at the situation in Japan, this issue is even more severe.

According to the Ministry of Health, Labour and Welfare's "2025 Basic Survey on Wage Structure," the monthly wage for general workers is 340,600 yen overall, 373,400 yen for men, and 285,900 yen for women.

If men's wages are set at 100, women's are 76.6. Although this is an improvement from the previous year's 75.8, a significant gap still remains.

Of course, this number cannot be directly interpreted as "women earn 23.4% less than men for the same job."

This is because of differences in occupation, position, years of service, working hours, and employment type.

In fact, the Ministry of Health, Labour and Welfare states that multiple factors, including differences in managerial positions and years of service, are related to the wage gap between men and women.

However, this does not mean the problem disappears.

Rather, in Japan, it leads to more structural questions such as "Why are there so few female managers?" "Why do gender differences in years of service arise?" and "Is there a system that makes it difficult for those responsible for childcare or caregiving to be promoted?"

And from an individual standpoint, it's not just about investigating gender differences.

Even within the same gender, it is not uncommon for annual income to differ by 1 million or 2 million yen just because the company they work for is different.

The Overlooked Difference Between "Company Salary" and "Market Salary" in Japan

In Japan, the perception that "salary is determined within the company" has been strong for a long time.

You join as a new graduate, receive small raises each year, and your salary increases as your position rises.

Therefore, the people you compare your salary with tend to be "colleagues from the same company" rather than external peers.

However, different prices are moving in the labor market.

For example, even if an IT engineer at one company has an annual income of 5 million yen, another company seeking the same skills might offer 7 million yen.

It's not that the individual's ability suddenly increased by 2 million yen.

It's simply that "the company they belong to pays differently for those skills."

This difference is crucial when considering individual wage disparities.

A company's salary system does not necessarily align with real-time market prices.

When hiring salaries for specific professions rise sharply due to labor shortages, it is possible that only the salaries of new hires increase, leaving the salaries of employees who have been with the company for several years behind.

As a result,

"New hires earn more."

"People who transferred earn 1 million yen more annually."

Such situations can occur.

If the individual is unaware, the difference is treated as if it doesn't exist.

Who Benefits from a Culture of Non-Disclosure of Salaries?

Talking about salaries has long been taboo in Japan.

It's difficult to ask about annual income even among friends.

Asking a colleague about their salary is even more challenging.

However, when salary information is completely secret, a significant information gap arises between the company and its employees.

The company knows the salaries of all employees.

On the other hand, employees generally only know their own salary.

In terms of negotiation, there is an overwhelming difference in the amount of information.

This issue is frequently debated on overseas social media as well.

On Reddit's "japanlife," where foreigners working in Japan gather, a post discussing a company contract clause that could be interpreted as "being fired if you disclose your salary to colleagues" sparked discussion. Comments suggested that preventing discussions about salaries might disadvantage workers.

While social media posts are not opinion polls and do not represent the views of society as a whole, it is interesting to note that there is a growing sense that "in an environment where you can't compare salaries with others, you may not even realize you're being underpaid."

However, the sense that "in an environment where you can't compare salaries with others, you may not even realize you're being underpaid" is spreading.

"Wage Transparency" is Advancing in Japan

In Japan, there is also a movement towards requiring companies to disclose salary information.

Under the Act on Promotion of Women's Participation and Advancement in the Workplace, companies with 301 or more employees have been required to disclose gender wage disparities since 2022.

Furthermore, from April 2026, companies with 101 to 300 employees will also be required to disclose gender wage disparities.

This significantly expands the scope of target companies.

This is important not only as a policy for gender equality but also has another meaning for workers.

It marks a shift from the era of "salary is a complete corporate secret" to an era where the wage structure of companies themselves can be compared.

The EU, including Germany, is going even further.

The EU's rules on wage transparency indicate a direction where companies are required to show the starting salary or salary range for job postings and are restricted from asking about past salary history during hiring.

This is a very important concept.

Because the method of "deciding the next salary based on the previous job's income" can lead to a system where people who were underpaid in their previous job continue to be underpaid in the next company.

The Risk of Continuing Wage Disparities with "Previous Salary +10%"

In Japan's job market, it is not uncommon to be asked, "What is your current annual income?"

And,

If it's currently 5 million yen, then 5.5 million yen.

If it's currently 7 million yen, then 7.7 million yen.

Offers are sometimes made based on the previous job's income.

It seems fair at first glance, but there is a significant problem.

What if someone with a market value of 7 million yen was only receiving 5 million yen?

Even with a 10% increase, it's only 5.5 million yen.

It's still 1.5 million yen short.

Meanwhile, someone who was receiving 7 million yen from the start might be offered 7.7 million yen for the same ability.

The past wage disparity is directly copied into the future.

On social media and in career-related discussions, there are voices questioning this "previous salary-based" approach. The argument is that offers should be based on market value and internal job standards.

This is an important point in terms of narrowing individual wage disparities.

On Social Media, Some Say "It's Faster to Change Jobs"

In discussions about salaries on social media, one particularly noticeable viewpoint is,

"It's faster to change jobs than to wait for a raise within the company."

This perspective is prevalent.

In the IT industry, there have been posts for some time suggesting that rather than negotiating for a raise in your current job, it's better to move to a company offering a higher salary and negotiate terms during the job change.

In fact, on X, there are many posts introducing cases where annual income increased by more than 1 million yen due to a job change. Of course, some of these cases include promotions for job change services, so the numbers cannot be generalized, but the idea of "using job hunting as a means to check market prices" is spreading.

On the other hand, there are opposing opinions.

In 2026, a discussion on X about whether "a job change that temporarily lowers annual income could be a career-building option" spread, with opinions divided between "a temporary income reduction is acceptable if it leads to future growth" and "it's difficult to restore income once it's lowered."

This discussion indicates that,

"Higher salary ≠ Always the right choice"

is the case.

The value of a job cannot be measured by salary alone, considering factors such as job content, growth opportunities, working hours, location, remote work, benefits, and work-life balance.

The important point is that accepting a low salary without knowing your market value and choosing other values despite knowing your market value are entirely different.

The Debate on "Japanese Salaries Are Low" Continues on Social Media

On Reddit's "JapanFinance," where many expatriates and foreign workers gather, there is also a discussion on "Why are Japanese salaries so low?"

While some posts point out the salary gap between foreign and Japanese companies, comments argue that simple international comparisons cannot be made without considering factors such as medical expenses, housing costs, safety, and cost of living.

This is a very important perspective.

The market value of a salary is not just about the "amount."

Whether a job with an annual income of 8 million yen but requires working late every night or a job with an annual income of 6.5 million yen but allows for almost no overtime and remote work is better depends on the individual.

That's why you shouldn't confuse "investigating market value" with "going to the company with the highest salary."

The purpose of knowing market value is not to change jobs.

It is to have options.

Four Ways to Investigate Your Market Value

So, how can people working in Japan investigate their "individual wage disparity"?

1. Look at Multiple Salary Data