Factors Affecting Salary in Japan for Foreign Workers

Japan is facing its worst demographic crisis in 90 years due to a decline in the productive workforce. Prime Minister Fumio Kishida has called it a serious threat and has launched policies to support families with children. This depopulation has resulted in an imbalance in the age pyramid, increasing social burdens, and slowing economic growth. Japan’s population is expected to decline by 30% by 2070, with 40% of the population aged 65 and over. This challenge requires immediate action from the government and society to stimulate population growth and address its negative impacts.
Job opportunities in japan
The number of foreign workers in Japan has changed significantly due to wage and exchange rate fluctuations. The previous year, Vietnamese workers were the largest group, surpassing workers from China. Meanwhile, the number of workers from Indonesia has almost tripled compared to 2018.
This increase is due to low wages in Indonesia, so many workers choose Japan as their main destination. They generally work in the manufacturing, construction, care, and food service sectors. In addition, Indonesian citizens dominate the category of specialized skilled workers, which was introduced in 2019 to fill labor shortages in certain sectors.
Despite Japan’s stagnant economy and the weakening yen, the country remains attractive to some foreign workers because of its lower cost of living compared to major cities in the United States and Europe. Recruitment agencies such as Robert Walters Japan continue to recruit workers from various countries.
The salary offered by Japan to foreign workers, especially interns, is quite high, at around 177,800 yen or equivalent to US$1,200 (around Rp. 18.7 million). As many as 56% of specialized skilled workers in Japan come from Indonesia, indicating their large role in the specialized labor sector in that country.
Cost of Living and Welfare
In general, the cost of living in Japan is relatively higher, with an average of 76.2% more expensive than in Indonesia. This difference covers various aspects of spending, such as food, transportation, housing, education, health, and other daily necessities. Factors that influence this difference include the inflation rate, economic structure, standard of living, and pricing policies in each country. Therefore, for individuals or families who plan to live or work in Japan, it is important to manage their budget carefully according to their Gaji di Jepang and the cost of living in that country.
In addition, the cost of renting a place to live in Japan has also increased by 78.2% higher than in Indonesia. This increase includes the price of renting a house, apartment, or other types of housing in both countries. Some factors that influence this difference include geographic location, available facilities, property size, and the balance between supply and demand in the local housing market. Therefore, individuals or families who plan to settle or rent a place to live in Japan need to consider their budget carefully to face higher costs compared to Indonesia.
This data shows that Japan has a relatively expensive cost of living, especially in terms of food, transportation, … Read More..