The Real Math Behind Foreigner Salaries in Japan

An article claims Japanese companies can save ¥1.6 million a year by hiring you instead of a local.

The Big Claim

So I stumbled upon this wild article in President Online analyzing Prime Minister Takaichi’s foreigner policies. It argues that the whole “we need foreigners for the labor shortage” thing has a major side effect: it keeps wages down for everyone.

The data showed that in industries with lots of foreign workers, like hospitality and food service, Japanese workers’ wages have actually gone *down* 4.2% in real terms over the last five years. Meanwhile, corporate profits for the big chains are at an all-time high. 🤔

The ¥1.6 Million 'Discount'

Here’s the crazy part. The article says it’s not because they’re paying us less per month — that’s illegal. The real difference is in the long-term cost.

A Japanese employee is seen as a lifetime commitment. Their salary grows every year with seniority, they get bigger bonuses, retirement funds, the whole package. The cost to the company compounds over decades.

But us? We're on a visa with a time limit. For a company, it’s like we’re a subscription service. After five years, the clock resets with a new person. The article calculated that this difference — the lack of compounding raises and long-term benefits — adds up to a saving of about ¥1.62 million per year, per foreign worker.

Who's Actually Winning?

So if our salaries aren't really growing and our Japanese coworkers are feeling the squeeze, who’s getting that extra ¥1.6 million? The big companies, apparently.

The report points out that the parent companies of major convenience stores, construction firms, and restaurant chains are all posting record profits. The author calls it a “stealth income transfer” from workers to corporations.

And when Japanese staff leave because of the low pay, the companies just say, “See? We have a labor shortage. We need more foreigners.” It’s a whole cycle.

It’s a strange feeling, isn’t it? To realize you’re the answer to a math problem you didn’t even know existed.