For foreign IT engineers working in Japan’s tech industry, salary negotiation presents one of the most significant challenges. Due to language barriers and cultural differences, many may feel they are not receiving fair compensation for their skills and contributions.
However, by understanding the unique value that foreign talent brings and adopting strategic approaches tailored to Japanese business culture, achieving substantial salary increases is entirely possible.
This article provides effective salary negotiation techniques alongside real success stories to guide you through the process.
1. Understanding Japan’s Salary Negotiation Landscape for Foreign IT Engineers
The number of foreign IT engineers working in Japan has been rapidly increasing in recent years. This trend stems from the reality that while Japan faces a severe shortage of IT professionals, there is an abundance of skilled technical talent available overseas.
However, many foreign IT engineers encounter the uniquely Japanese challenge of “salary negotiation.” What is considered standard practice in their home countries often doesn’t progress smoothly in Japan due to cultural differences and language barriers.
Critical Differences Between Japanese and International Salary Negotiation Cultures
While salary negotiation is recognized as a fundamental right overseas, Japan’s deeply rooted culture of “humility” and “valuing harmony” still harbors a tendency to view salary negotiation as “selfish” or “demanding”
In Japanese salary negotiations, indirect approaches are preferred over direct demands, and arguments must be based on contributions to the company rather than personal circumstances.
Additionally, emphasis is placed on long-term relationships, making trust-building with supervisors and HR personnel crucial for successful negotiations.
Success Rates and Data for Foreign IT Engineers’ Salary Negotiations
Foreign IT engineers actually tend to have higher salary negotiation success rates compared to their Japanese counterparts.
This is because companies are actively seeking to secure foreign talent and recognize the necessity of offering competitive compensation packages.
Salary Range Examples for Foreign IT Engineers
- Programmers: ¥3,000,000 – ¥10,000,000
- System Engineers: ¥3,000,000 – ¥7,000,000
- Software Engineers (5+ years experience): ¥5,800,000+
- Software Engineers (10+ years experience): ¥6,700,000+
Notably, foreign IT engineers tend to receive slightly higher compensation than Japanese engineers with equivalent skills.
Leveraging the IT Talent Shortage for Negotiation Advantage
According to Ministry of Economy, Trade and Industry projections, Japan will face a shortage of up to 790,000 IT professionals by 2030. This critical talent shortage serves as the most powerful negotiation tool for foreign IT engineers.
Competitive Advantages of Foreign IT Engineers
- High adaptability to latest technology trends
- Knowledge of global standard development methodologies
- English communication capabilities
- Practical experience with cutting-edge technologies like AI, cloud computing, and blockchain
Reference: Ministry of Economy, Trade and Industry: Current State of IT Human Resource Development
2. Seven Unique Salary Negotiation Strategies for Foreign IT Engineers
For foreign IT engineers to receive fair compensation in Japan, it’s essential to understand and strategically utilize the unique value and constraints that come with being foreign talent.
Strategy 1: Leveraging Visa Requirements for Salary Negotiations
Foreign IT engineers working in Japan primarily require the “Engineer/Specialist in Humanities/International Services” residence status, which legally mandates employers to pay “salaries equivalent to or higher than Japanese nationals” under Ministry of Justice regulations.
This legal foundation can serve as negotiation leverage by presenting specific salary benchmarks for Japanese engineers in equivalent positions and experience levels, appealing to the company’s compliance awareness.
Reference: Immigration Services Agency of Japan: Engineer/Specialist in Humanities/International Services
Strategy 2: Maximizing the Appeal of Rare Technical Skills
Many foreign IT engineers possess technical skills that are scarce in Japan.
Examples of Technical Skills
- Practical experience with cloud services (AWS, Azure, GCP)
- AI, machine learning, and data science expertise
- Proficiency in high-demand programming languages like Python, Go, Rust, and Kotlin
During negotiations, present specific contribution projections such as: “I led projects using cutting-edge technology in my home country, and implementing this technology could result in annual cost savings of ¥X million through improved operational efficiency”
Strategy 3: Culturally-Aware Negotiation Styles
Japan favors indirect and collaborative approaches. Begin by expressing respect and gratitude toward your counterpart, and focus negotiations on company contributions rather than personal demands.
Strategy 4: Utilizing Japanese Language Proficiency as Negotiation Capital
Japanese language ability represents significant added value for foreign IT engineers. Present specific JLPT (Japanese Language Proficiency Test) levels and emphasize your value as a bridge engineer.
Reference: Japanese Language Proficiency Test JLPT: Certification Standards
◆Related Articles
The following article explains the JLPT (Japanese Language Proficiency Test). Please use it as a reference.
Strategy 5: Demonstrating Long-term Employment Commitment
Since statistics show higher turnover rates among foreign IT engineers, clearly demonstrating long-term employment commitment can showcase your value as a worthy investment.
Strategy 6: Presenting Added Value as Global Talent
As many Japanese companies consider overseas expansion, foreign IT engineers offer unique value as global talent. Highlight your knowledge of home country or regional markets and international networks.
Strategy 7: Leveraging the Active Job Market for Negotiations
Utilize the severe talent shortage in the IT industry as negotiation material, and appropriately disclose other job offers to seek fair compensation that reflects your market value.
3. Scenario-Based Practical Salary Negotiation Methods for Foreign IT Engineers
Foreign IT engineers typically encounter salary negotiation opportunities in three main scenarios.
Job Change Salary Negotiations: Effective Post-Offer Strategies
The most appropriate timing for salary negotiations during job changes is between receiving the job offer and accepting it.
Basic Steps
- Express gratitude within 24-48 hours after receiving the offer
- Review employment condition details thoroughly and organize any questions
- Consider desired salary based on market rates and personal value
- Conduct negotiation meetings with hiring managers
Sample Negotiation Script
“Thank you for this valuable opportunity. My previous salary was ¥X million, and I’ve confirmed that the market rate for foreign engineers with equivalent technical skills is approximately ¥X million. Would it be possible to consider a salary of ¥X million, representing a 15% increase from my previous position?”
Current Position Salary Increases: Mastering Supervisor Meetings
Salary increase negotiations in current positions require more careful approaches compared to job change negotiations.
Appropriate Timing
- 1-2 months before performance evaluation periods
- Immediately after completing major projects
- During visa renewal periods
Sample Negotiation Script
“Thank you for your continued guidance. Over the past year, I’ve expanded my responsibilities by acquiring new technologies and leading the XX project. Considering industry benchmarks and my contributions, would it be possible to consider a monthly salary increase of ¥X?”
Utilizing Visa Renewal Periods for Salary Negotiations
Visa renewal periods present unique negotiation opportunities for foreign IT engineers. Companies become more conscious of appropriate salary levels as they must report compensation during visa renewal procedures.
Sample Negotiation Script
“Visa renewal procedures begin next month, and as a requirement for obtaining and renewing residence status, legally mandated salaries must be equivalent to or higher than Japanese nationals in similar positions. I would appreciate consideration for adjustment to the industry standard salary of ¥X million”
4. Five Critical Behaviors to Avoid in Salary Negotiations
Foreign IT engineers often unintentionally create negative impressions during salary negotiations due to cultural differences and language barriers.
To increase success rates, it’s crucial to understand and avoid behaviors that are considered inappropriate in Japanese business culture. Here are five particularly important behaviors to avoid:
1. Overly Direct and Aggressive Negotiation Styles
Direct and assertive negotiation styles common in Western countries may be perceived as “aggressive” or “lacking in cooperation” in Japan. This represents the biggest pitfall for foreign engineers.
Expressions and Behaviors to Avoid
- Definitive statements like “My salary is obviously too low”
- Threatening comparisons like “Other companies would pay me ¥X million”
- Statements that deny the negotiation partner’s judgment
- Demanding immediate responses or unilateral deadline setting
- Direct emotional appeals or expressions of dissatisfaction
- Intimidating behaviors like table banging or raising your voice
Improved Example: “Thank you for your continued guidance. I recently had opportunities to assess market evaluations and gained insights into how my skill set is valued. To leverage my experience at your company and contribute even more, I would appreciate consideration for compensation that aligns with market standards. I apologize for bringing this up during your busy schedule, but I would be grateful for your consideration”
Key Cultural Considerations
Japan values “considering the other party’s position” “proceeding step by step” and “showing gratitude” Additionally, maintaining a “win-win” relationship mindset and presenting mutual benefits to the company proves effective.
2. Using Personal Circumstances as Justification for Salary Demands
A common mistake among foreign engineers is citing personal reasons such as family circumstances, rising living costs, or remittances to home countries as negotiation grounds.
This creates a very negative impression with Japanese companies and can actually disadvantage negotiations.
Personal Circumstances to Avoid as Justification
- Rising living costs or rent increases
- Increased remittance needs to family in home country
- Children’s education or medical expenses
- Personal debt or financial difficulties
- Lifestyle changes leading to increased expenses
- Spouse’s income reduction or unemployment
- Increased hobby or entertainment expenses
Improved Example: “Two years have passed since joining the company, and through leadership experience in the XX project and development of the XX system, I feel my technical and management skills have improved significantly. The new system implementation achieved annual cost savings of ¥2 million. Considering industry benchmarks and my current scope of responsibilities, I would appreciate consideration for a salary increase”
Appropriate Negotiation Foundations
- Technical skill improvements and certifications
- Concrete project achievements
- Expanded responsibilities
- Industry benchmark comparisons
- Increased contributions to the company
3. Demands That Ignore Visa and Residence Status Constraints
Some foreign IT engineers make unrealistic demands without understanding residence status constraints or legal requirements.
From the company’s perspective, this demonstrates “lack of basic knowledge” and undermines negotiation credibility.
Visa-Related Behaviors to Avoid
- Salary negotiations premised on side jobs/part-time work not permitted by residence status
- Hinting at resignation/job changes while ignoring visa renewal timing
- Overly aggressive negotiations using legal requirements (equivalent Japanese salaries) as leverage
- Statements that underestimate the company’s visa support burden
- Presenting long-term salary plans without considering residence period
- Excessive demands for company coverage of visa application costs
Improved Example: “Residence status requirements mandate salary levels equivalent to Japanese nationals, and considering my job responsibilities and experience, I believe adjustment to appropriate levels would be worth considering. For long-term contribution to your company, I also hope to build my career under stable compensation. I understand that visa support creates additional burdens for the company, and I aim to contribute accordingly”
Proper Utilization Methods
While visa and legal requirements can serve as negotiation tools, they should be presented as mutual benefits for both company and employee rather than used threateningly.
4. Avoiding or Over-Depending on Others Due to Language Barriers
Avoiding negotiations entirely or completely delegating them to others due to reasons like “my Japanese isn’t perfect” or “I don’t understand the culture” is also problematic.
This prevents proper self-advocacy and misses career development opportunities.
Language Barrier Behaviors to Avoid
- Dependent attitudes like “Please provide an interpreter because I’m not good at Japanese”
- Having colleagues or friends conduct important negotiations on your behalf
- Complete avoidance of negotiations citing cultural differences
- Blaming inadequate preparation on language abilities
- Extreme avoidance of email or written negotiations
- Dismissing issues with “I don’t really understand”
- Over-dependence on Japanese colleagues
Improved Example: “While my Japanese expression may be imperfect, I’d like to discuss this important matter directly with you. I’ve organized key points in advance, so please review them. If there are any points I don’t understand adequately, please don’t hesitate to point them out”
Effective Coping Strategies
- Prepare and organize key points in Japanese beforehand
- Show a willingness to ask questions about unclear points
- Combine written materials with verbal explanations
- Seek advice (not delegation) from trusted Japanese seniors
5. Disregarding Japanese Business Customs and Manners
Failing to understand and respect Japan’s unique business manners and customs represents another major inappropriate behavior.
These directly impact negotiation success, making prior learning and appropriate responses essential.
Japanese Business Manners to Note
- Strict punctuality (lateness is absolutely unacceptable)
- Respect for hierarchy and seniority systems
- Proper business card exchange and greeting protocols
- Appropriate speaking methods and timing in meetings
- Dress code and grooming standards
- Telephone etiquette and honorific language usage
- Bowing angles and general deportment
Specific Inappropriate Behaviors
- Arriving late to scheduled negotiations
- Participating in overly casual attire
- Interrupting others to speak
- Looking at smartphones while listening
- Crossing legs or leaning back in chairs
- Casual conversation ignoring age or position
- Proposing negotiations while eating
Improved Example: “Thank you for your valuable time despite your busy schedule. I’d like to proceed with appropriate procedures while respecting Japanese business culture. First, I’d like to report on my current work situation”
Basic Negotiation Etiquette
- Arrive 5-10 minutes before scheduled time
- Wear clean, professional business attire
- Use appropriate honorific language based on counterpart’s position and age
- Show willingness to listen completely to the other party
- Don’t forget to express gratitude
- Don’t rush conclusions; respect the other party’s consideration time
- Receive business cards with both hands and handle them carefully
5. Success Stories: Foreign IT Engineers Who Achieved Salary Negotiation Success in Japan
Learn specific strategies and success factors through real success stories from foreign IT engineers.
Vietnamese Python Engineer Mr. L (28 years old): Achieved ¥1.5 Million Annual Salary Increase During Job Change
Before: ¥4.5 million → After: ¥6 million
Success Factors
- Thorough market research over 3 months
- Portfolio creation on GitHub with quantified achievements
- JLPT N2 certification demonstrating Japanese language ability
- Presentation of specific contribution projections
Negotiation Statement: “My current annual salary is ¥4.5 million, but considering my 3 years of practical experience in Python and data science, plus Japanese communication abilities, the market rate appears to be approximately ¥5.8-6.2 million. Would it be possible to consider ¥6 million?”
Indian Full-Stack Engineer Mr. R (32 years old): Achieved ¥1 Million Annual Salary Increase at Current Company
Before: ¥5.2 million → After: ¥6.2 million
Success Factors
- Timing selection immediately after major project success
- Thorough quantification of contributions (150% user acquisition rate achievement, 40% system response speed improvement)
- Presentation of 3-year technical growth plan and projected contributions
Chinese Cloud Engineer Mr. W (30 years old): Successful Negotiation Using AWS Certifications
Before: ¥4.8 million → After: ¥6.5 million
Success Factors
- Creating rare value through AWS Certified Professional acquisition
- Negotiating during visa renewal timing
- Concrete presentation of ¥3 million annual cost reduction achievements
- Appropriate utilization of other company offers
Filipino Frontend Engineer Ms. M (26 years old): ¥2 Million Annual Salary Increase Over 3 Years from New Graduate
Starting: ¥3.5 million → Current: ¥5.5 million (gradual increase over 3 years)
Success Factors
- Gradual salary negotiations every 6 months
- Early adoption of new technologies like React Hooks and Next.js
- Customer service capability appeal through JLPT N1 certification
American Senior Engineer Mr. J (35 years old): ¥3 Million Annual Salary Increase Through Foreign Company Transfer
Before: ¥7 million → After: ¥10 million
Success Factors
- Strategy highlighting Silicon Valley experience
- Transfer to foreign company with global standard evaluation systems
- Comparison with US equivalent position salaries ($120,000-150,000)
- Presentation of specific contribution potential to Asia-Pacific regional business
6. “Understanding” Is Key to Salary Negotiation Success for Foreign IT Engineers in Japan
Successful salary negotiation for foreign IT engineers requires understanding Japanese cultural backgrounds and strategic approaches.
By utilizing visa requirements and the rarity of technical skills, and negotiating at appropriate timing while maintaining respect for counterparts, paths will certainly open.
Reference the strategies and success stories introduced in this article to achieve fair compensation that matches your technical abilities and make your career in Japan more fulfilling.
