Some of the visitors to this blog were interested to know the living expenses in Japan and how much they can save. It is quite natural to have these concerns about living costs before one makes final decision to come to Japan. For expatriates, apart from the job satisfaction, savings is one of the major driving forces to accept the offer from their prospective employer in Japan. Cost of living has increased recently. “Especially in the changed scenario” one would like to add with the preceding sentence in the wake of recent alarming news from one of the famous baby food producers.
Living cost for foreigners in Japan and I believe also for Japanese people has been on the rise after March. Either people buy water from the stores. Some book online from western sides of Japan or water from outside Japan. The consumption tax will have negative impact on the potential savings.
Living cost for foreigners in Japan and I believe also for Japanese people has been on the rise after March. Either people buy water from the stores. Some book online from western sides of Japan or water from outside Japan. The consumption tax will have negative impact on the potential savings.
Anyway, based on my almost four years experience in Japan - first one year as a married bachelor and then the remaining three years with family, I did an attempt to estimate approximate savings in percentage of one’s gross income. The assumed gross income is 10 million Japanese yen, which I think is reasonable for an average foreigner salary-man in Japan. Average income per head in Japan is estimated to be around US$ 36000 per Annam. This will be converted into roughly 230,000 Japanese yen per month or 2.76 million Japanese yen per year. This averages the income of all the sections of the society, which if we consider may be too low to the majority of the foreigners.
The categories considered are 1.) bachelor 2.) Married couples without children 3.) Married couples with two children, none going to school 4.) Married couples with two children, one going to school 5.) Married couples with two children, both children going to school. For all the categories, the father is the sole breadwinner and the wife is free to do things at her wish but mainly taking care of children. A rough estimation of savings in percentage can go like this;
The categories considered are 1.) bachelor 2.) Married couples without children 3.) Married couples with two children, none going to school 4.) Married couples with two children, one going to school 5.) Married couples with two children, both children going to school. For all the categories, the father is the sole breadwinner and the wife is free to do things at her wish but mainly taking care of children. A rough estimation of savings in percentage can go like this;
- Bachelor without girlfriend(s): 49%
- Married couple without children: 42%
- Married couple with two children: 39%
- Married couple with two children, one attend school: 30%
- Married couple with two children, both of them attend school: 23%
Bachelors with girlfriends may have to borrow money either from their friends or from the employer. Same is the case with Captain Cooks. Travel addicts will spend more than their monthly earnings in Japan! Japan is ardently beautiful and a passionate traveler can never take rest of course by emptying his pockets. Travel expenses are higher in Japan comparatively.
In this post I don’t want to mention the amount of money one can save as it purely depends on individual factors. Some people have good control over money matters while others have torn pockets. So I take a neutral position. Percentage of savings is up to the individual. I just tried to give an example in this post and do not claim accuracy, but believe me this is based on my past four years of living experience here in Japan.
In this post I don’t want to mention the amount of money one can save as it purely depends on individual factors. Some people have good control over money matters while others have torn pockets. So I take a neutral position. Percentage of savings is up to the individual. I just tried to give an example in this post and do not claim accuracy, but believe me this is based on my past four years of living experience here in Japan.
Dear Jayaprakash,
ReplyDeleteGreat blog you have here, but you haven't written in a while now. Hope you can answer a few questions for me.
I have been invited to work in a company in Kawasaki and have not spoke about the salary yet. But since we already have a policy in place, I have some details which you can help me with.
The deputation is for a minimum of 3 years.
1. Accommodation will be taken care by the company for a maximum value of 220000JPY per month. - I'm planning to select a house with maximum furniture of utility costs covered within the rent so that I can cover expenses within company's provision.
2. Looks like the norms in the company for my age and experience is around 350,000-400,000JPY per month gross. and the usual 2 bonuses per year - Can you help me with the take home?
3. I am married, no kids, and my wife is a soft skills trainer and our joint earnings are 100,000 INR per month right now in India. We have our own house and a comfortable lifestyle. Now, If my take home in Japan is around 280,000 JPY can it be compared to a 1lac earning in India? As my wife will not be earning.
4. Train pass will be provided for me by the company. One time relocation costs will be covered. One time to-and-return airfare for both of us is covered.
5. If I plan to have a baby in the near future, how is the level of maternity hospitals and care in Japan? I know it will be good, but how will an Indian family handle it? As I may not get help from our parents since they are employed in India and cannot come to Japan for extended duration.
6. How is the salary increment in Japan? will I still be stuck with the same 300,000 JPY for the next 5-8 years of will there be a slab? My concern is that, for 2 people, my salary might be ok, but once we have a child, and schooling, can I re-negotiate with the company? Is it ok to do that in a Japanese company?
Thank you in advance Jayaprakash,
Best Regards,
Navin