A comparison of Japan's average annual wage

Among our network of expat friends here in Japan, there's one topic that often comes up in conversation – that Japan isn't really a great place for earning money and getting ahead compared to back home. Sure, if you're sponsored by some big international company who also pays your housing costs it ends up being quite financially viable, but for expats from certain countries it can be a pretty big disadvantage, money-wise.

A quick look at OECD data about average monthly wages doesn't paint a terrible picture for Japan, but it doesn't stack up very well compared to my home country (Australia) or my husband's home country (the United States). The U.S. ranks third on the list with an average annual wage of $77,463, and Australia comes in at ninth with $59,408. Japan is a bit further down the list in 24th place, with an average annual income of $41,509.

* Please note that the OECD figures are all listed in USD equivalent, and based on most recent data from 2022. Pic Credit: James Hodges/CC By NC 4.0

When we calculate it, that means that between my husband and I, we're potentially falling behind by roughly $20,000 to $30,000 each (on full-time wages) here in Japan compared to what we could be earning in our home countries.

I know that here in Japan, those wages are reasonably sustainable – so for people who have moved here with the ability to stay permanently (e.g. they are married to a Japanese citizen spouse) it might not present any issues. For my husband and I, though, we eventually will need to move home, and therein lies the problem. We feel like we're constantly getting further behind, and with everything getting more expensive (groceries, the price of housing, and so forth) that feeling is exacerbated.

As I mentioned in a recent blog here, we have been deeply considering when to pull the plug and move home. That comes with an array of exorbitant costs, too, which doesn't make the decision any easier. They say that money doesn't buy happiness, but let's face it -- it certainly makes life decisions a lot easier when you have more of it to go around.

Where does your country fall on the OECD Average Annual Wage list? If you had to move back home, would your savings be enough to sustain you for long enough to find your feet again?