Japanese companies are increasingly raising starting salaries for new graduates, with Kasumigaseki Capital setting the starting salary for new graduates joining in fiscal 2027 at ¥1 million per month. Starting salaries are rising particularly in the restaurant industry, while improvements in employee benefits, including expanded housing allowances, are spreading across industries.
Japanese companies are improving compensation for new graduates as they prioritize securing talent, with a series of reports highlighting higher starting salary levels. Kasumigaseki Capital has announced a starting salary of ¥1 million per month for new graduates joining in April 2027, and similar moves are emerging at other companies.
Following Kasumigaseki Capital's decision on starting salaries, 物語コーポレーション, which operates the 焼肉きんぐ restaurant chain, as well as 平和堂 and ゆで太郎, have decided to raise their starting salaries.
Competition for talent is intensifying, particularly in the restaurant industry. In addition to raising starting salaries, companies are expanding hiring targets and presenting wage increase plans. The report also highlights moves to set starting salaries for graduates of colleges of technology at levels comparable to those for university graduates, as well as reviews of employment conditions, including higher housing allowances.
Experts point out that when young people choose where to work, it is important to understand not only starting salaries but also prospects for pay increases and the overall distribution of wages. Companies, too, are being called on to design systems that include sustained wage increases and measures to improve employee retention.