Tips and tricks for answering questions about your desired annual salary in an interview

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In this article, we will explain how foreigners can communicate their desire for a higher salary when asked about their desired annual salary during an interview .

We will also explain in detail how you should answer, as well as the average annual salary increase in Japan’s job market and points to be aware of.

When job hunting or interviewing in Japan, you will be asked about your desired annual salary. However, especially for foreigners, many are unfamiliar with Japanese salary standards and the culture of salary negotiation, and may be unsure of how to answer.

Please use this video as a reference and change jobs to significantly increase your annual income.

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Why are you asked about your desired annual salary in the first place?

There are three main reasons why companies ask about your desired annual salary.

1. To check if it fits your budget

Companies have salary budgets when hiring to ensure that candidates’ expectations are not too far off the mark.

2. To know the candidate’s self-evaluation

The desired annual salary is “how much value you place on your experience and skills,” so it’s a way to confirm the candidate’s evaluation in numbers.

3. To prevent mismatches after joining the company

If an employee is dissatisfied with their salary, they may quit soon after joining the company. To avoid this risk, the company checks this in advance.

Japanese companies’ approach and points to note

In Japanese interview culture, there is a tendency to more or less match the company’s offer, rather than the Western style of aggressive salary negotiations.

Points to pay particular attention to are as follows:

•Don’t be too pushy about your salary expectations

If you express an unrealistic salary expectation that is far below the market rate, the company will think that even if they join the company, they will quit soon because they are dissatisfied with the salary.

Not too far from your current salary

In Japan, the average annual salary increase from changing jobs is around 10-20%. If you ask for a salary increase of 30% or more, it is likely to be deemed “unrealistic.”

It’s important to be flexible

It is important to show flexibility by saying things like, “I would like to pay XX yen, but I will follow your company’s regulations,” or “I would like to discuss this depending on the job content and position.”

・Tell them you are interested not only in the salary but also in the job content.

Adding a comment like, “Annual salary is important, but more than that, I value the opportunity to participate in your company’s projects” will make a good impression.

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Points to consider when communicating your desired annual salary

There are four points to keep in mind when communicating your desired annual salary.

1: Based on your current annual income

It is common to answer your desired annual salary as “your current annual salary + alpha.” For example, if your current annual salary is 4 million yen, it would be natural to say that your desired salary is around 4.2 million to 4.5 million yen.

2: Answer by holding the range

Rather than giving a specific answer like “4 million yen,” you will appear more flexible if you state a range, such as “I’d like to pay between 4 million and 4.5 million yen.”

3: Explain based on experience and skills

Rather than just telling them the amount, explain the reason for the amount by saying something like, “I would like to use my experience to achieve results at your company, so I would appreciate it if you could take that into consideration,” so that both parties can understand that it is a win-win.

4. Be honest, but not too greedy

If you state a price that is too high, people will think you have no sense of the market. Conversely, if you state a price that is too low, people may think you have low self-esteem, so be careful.

You should also find out the average annual salary increase when changing jobs in Japan.

In Japan’s job market, there is a certain standard for the amount of annual salary increase.

General market rate: +5% to 10%
Example: Annual income of 4 million yen → 4.2 million to 4.4 million yen after changing jobs

If your skills or qualifications are valued: +15%
Example: Annual income of 5 million yen → 5.7 million yen after changing jobs

For managerial positions and highly skilled professionals: +20% or more is possible
. *However, if you change jobs to a position you have no experience in, your annual salary may remain almost the same or even decrease.

When changing jobs, it is important to think not only about the desired annual salary, but also about the job content and future career path.

\ Tips on how to get a job in Japan can be found here /

Example of how to answer the question about your desired annual salary

Here are some example sentences for expressing your desired annual salary. You can use them as they are, or adjust them to your liking.

You will be asked questions like this in the interview.

Please tell us your desired annual salary.

Example 1

My current annual salary is approximately 5 million yen. I would like to take advantage of my development experience and try my hand at management, so I would like to earn around 5.5 million yen. However, I would be happy to negotiate this flexibly depending on the job content and role.

Example 2

My annual salary at my previous job was 4 million yen. In this job change, I would like to take on new challenges while making use of my experience, so I would like to work at the same level as my current job or close to it. However, I will abide by your company’s regulations.

Example 3

My current annual salary is 4.5 million yen. I would like to contribute by utilizing my customer service experience and language skills. I would like to earn around 4.8 million yen, but I would be happy to discuss this depending on the job content and evaluation system.

Example 4

My previous job was about 3.5 million yen. In this job change, I would like to take advantage of my language skills and take on a wider range of tasks, so I would like to be paid at the same level as my current job or slightly higher. However, I will abide by your company’s regulations.

Example 5

My current annual salary is 7 million yen. I would like to utilize my qualifications and work long-term in the future. I would like to earn around 8 million yen, but I would be happy to negotiate this flexibly depending on the job content and my career path.

These are ways of answering that will leave a bad impression.
Not only will they leave a bad impression, but they may also result in your being rejected, so be careful.

I won’t join unless I can get at least 5 million yen.

Being too assertive will create a negative impression.

I haven’t thought about it much yet.

Find out your market value beforehand

I would like to earn at least 1.5 million yen more than I would at my current company.

Unrealistic amounts that are far from the market price will not be accepted. There must be a reason for the 1.5 million yen increase.

I need to send money to my family, so I would like it to be increased by 1 million yen.

Rather than just stating the amount for your own convenience, explain why you will contribute to the company’s sales by joining the company.

summary

In Japanese interviews, the reason you are asked about your “desired annual salary” is to check whether it matches the budget and to confirm the candidate’s self-evaluation.

The general target desired annual salary is “current employment income plus 5 to 10%.”

The best way to answer is to follow the order: experience → desired salary → flexible attitude.

And it is not okay to cite only high prices or dissatisfaction as reasons.

For foreigners, the salary negotiation culture in Japan may seem a bit reserved, but being flexible in your responses will make you more likely to be seen as a realistic and cooperative candidate.

Be well prepared and be able to answer with confidence.

Changing jobs is not just about money, it’s also an opportunity for career growth. The key to answering your desired annual salary question is to not get too hung up on numbers, but to connect it to your vision for the future.

In conclusion, it’s good to increase your annual income by changing jobs, but you should also contribute to the company’s sales after joining.

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