Updated 25 October 2026
Quick answer: In Japan in 2026, the minimum wage is ¥1,177/hour (average), about $1,301 a month full time; an average earner keeps 77% of their pay after income tax and social security; mortgage rates are about 1.45%; the state pension age is 65. The table below puts 8 everyday money measures for Japan side by side and ranks each one against the other countries in our data, using official figures from national statistics offices, central banks, the OECD and Eurostat.
Against the other countries in our data, Japan stands out here: its mortgage rate, 1.45% (variable rate, Oct 2026), is the 2nd lowest of 31 countries; its 2027 pay-rise forecast, 3.0% (inflation 1.7%), is the 3rd lowest of 29 countries; its state pension (as a share of pay), 42.4% of net pay, is the 7th lowest of 50 countries. It sits nearer the middle for minimum wage and state pension age.
Japan at a Glance
| Measure | Japan | Rank |
|---|---|---|
| Minimum wage | ¥1,177/hour (average) (≈ $1,301/month) | 14th highest of 38 |
| Tax on an average wage | 22.6% (keeps 77%) | 11th lowest of 38 |
| Pay rise forecast 2027 | 3.0% (inflation 1.7%) | 3rd lowest of 29 |
| Mortgage rate | 1.45% (variable rate, Oct 2026) | 2nd lowest of 31 |
| State pension age | 65 | 16th lowest of 39 |
| Pension (share of pay) | 42.4% of net pay | 7th lowest of 50 |
| Bank deposit protection | ¥10 million plus interest per person, per bank | — |
| Inheritance tax (children) | top rate 55% | — |
Rank compares Japan with the other countries in each dataset; "highest" means the largest value. "—" means the measure isn't ranked.
Minimum Wage in Japan (2026)
The legal minimum wage in Japan is ¥1,177/hour (average). For a month of full-time work that is about $1,301 at current exchange rates, 14th highest of 38 countries in our comparison. National weighted average for fiscal 2026; set by prefecture, from ¥1,280 in Tokyo.
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Income Tax and Take-Home Pay in Japan
A single worker on the average wage in Japan (about $60,000 at purchasing-power parity) pays 22.6% of gross pay in income tax and employee social security, so they keep 77%. That is 11th lowest of 38 countries, against an OECD average of 25.1%.
Income tax and employee social security take 22.6% of pay at the average wage, 20.6% at two-thirds of it and 27.0% at 1.67 times it. Including employer contributions, the total tax wedge is 33.1% of labour costs.
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Pay Rises in Japan: 2027 Forecast
Employers in Japan expect to raise salaries by 3.0% in 2027 (median of the major pay surveys), after 3.1% in 2026. With inflation at 1.7% (Aug, core), that is a real rise of about 1.3 points.
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Mortgage Rates in Japan (2026)
The typical mortgage rate in Japan is 1.45% (variable rate, Oct 2026), 2nd lowest of 31 countries.
Estimate by Mizuho Research after the Bank of Japan raised its rate to 1.25% in September 2026; fixed rates about 3.5%.
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Retirement Age in Japan
The state pension age in Japan is 65 for people reaching it in 2026; the earliest you can claim is 60 (reduced). Future change: none legislated. Basic pension can start any time from 60 to 75, with reductions or increases.
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How Much the State Pension Pays in Japan
A full-career average earner in Japan can expect a mandatory pension worth about 42.4% of their previous net pay, 7th least generous of 50 countries (OECD average 63.2%). Low earner (half the average wage): 62%. High earner (twice the average): 34%.
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How Much of Your Money Is Protected in Japan
Bank deposits in Japan are protected up to ¥10 million plus interest per depositor, per bank (about $63,800), under the DICJ scheme. Non-interest settlement accounts fully protected. Money in payment apps and e-money wallets is usually not covered.
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Inheritance Tax in Japan
Japan has inheritance tax. Children can receive ¥30 million + ¥6 million per heir (whole estate) tax-free, and the top rate for children is 55%, the highest of 28 countries we compare. Rates rise from 10% to 55% above ¥600 million per heir's share; spouses get a large deduction.
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Japan vs Australia, China and India
The same measures for Japan and its nearest neighbours in our data, side by side.
| Measure | Japan | Australia | China | India |
|---|---|---|---|---|
| Minimum wage | ¥1,177/hour (average) (≈ $1,301/month) | A$26.44/hour (≈ $3,058/month) | ¥2,740/month (≈ $411/month) | ₹178/day (national floor) (≈ $49/month) |
| Tax on an average wage | 22.6% (keeps 77%) | 23.5% (keeps 76%) | — | — |
| Pay rise forecast 2027 | 3.0% (inflation 1.7%) | 3.3% (inflation 4.0%) | 4.3% | 8.9% (inflation 5.5%) |
| Mortgage rate | 1.45% (variable rate, Oct 2026) | 6.49% (average variable, Oct 2026) | 3.5% (5-year LPR, Oct 2026) | 7.25% (bank home loans, 2026) |
| State pension age | 65 | 67 (Age Pension) | ~60 y 4 m men; ~55 y 4 m / 50 y 8 m women | 58 (EPS pension) |
| Pension (share of pay) | 42.4% of net pay | 53% of net pay | 103.6% of net pay | 44.6% of net pay |
| Bank deposit protection | ¥10 million plus interest per person, per bank | A$250,000 per person, per bank | ¥500,000 (RMB) per person, per bank | ₹5 lakh (₹500,000) per person, per bank |
| Inheritance tax (children) | top rate 55% | None | None | None |
Compare Japan With Other Countries
See every country side by side in Compare Countries 2026: Wages, Tax, Mortgages and Pensions, or compare Japan with nearby countries in our data: Australia, China, India, New Zealand and South Korea.
Related Guides
Figures checked against the official sources listed in each linked guide in October 2026. Exchange-rate conversions are approximate. This page is for information and isn't financial or legal advice.
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