Feature | Column | Status of Residence Required for Working in Japan

 As Japan faces a growing labor shortage, foreign talent is becoming increasingly essential. At the same time, many companies are struggling to keep up with major regulatory changes—particularly the transition from the long-standing Technical Intern Training Program (TITP) to the Specified Skilled Worker (SSW) system, as well as the introduction of the Employment for Skill Development system scheduled for 2027.

Amid these changes, designing fair and compliant wage structures has become more important than ever, especially ensuring that foreign workers receive compensation equal to or higher than that of their Japanese employees.

This article explains the latest salary trends, the relevant legal rules, and future wage structures considering the upcoming introduction of the Employment for Skill Development System.

 1. Comparison of TITP and SSW

 Before designing wage structures, it is essential to understand the fundamental differences between the two systems.

Differences in the Objectives and Basic Structures of Each System: From Support to Workforce

Technical Intern Training Program (Technology Transfer)

• Objective: “International contribution” through skill and technology transfer to developing countries

• Wages are often set close to the minimum wage because the program focuses on learning

Specified Skilled Worker (Labor Force Recruitment)

• Objective: Directly secure labor for industries facing severe labor shortages

• Targets individuals with proven skills who can contribute immediately

• Wages must match market standards for Japanese employees in comparable roles
  

Background of the Transition from TITP to SSW and the Current Situation as of 2026

 As of 2026, it has become common for trainees with three or more years of experience to transition to SSW status (1)(2). This benefits companies by retaining trained personnel and provides foreign workers with higher wages and longer-term residency opportunities.
However, in 2026, competition for talent is increasing, so it is essential to set conditions with a proper understanding of system differences, such as the freedom to change jobs.

 2. Comparison of Salary Ranges and Statistics for SSWs and Technical Intern Trainees

 When considering salary levels for SSWs, the first reference point should be official statistical data. These workers are clearly defined as “workers,” and fair wages are required.

 Average Salary Levels for SSWs Based on the Latest Data

According to the Immigration Services Agency of Japan (2024), average base salaries for SSW (i) employees typically range from 200,000 to 240,000 yen per month(2)(3).
Unlike Technical Intern Trainees, SSWs are considered “immediately employable individuals with a considerable degree of knowledge or experience,” so their salary ranges are set higher than those of interns (4).

 Including overtime and allowances, many workers earn 250,000 to 280,000 yen, comparable to young full-time Japanese employees.

 Salary Structure for Technical Intern Trainees and Pay Increases When Moving to SSW 

 In contrast, the average base salary for Technical Intern Trainees is generally around 170,000 to 190,000 yen per month. TITP was originally designed for international contribution (technology transfer), so wages were often set in line with the minimum wage.

 With the transition to the SSW, companies are now required to shift their mindset from treating Technical Intern Trainees as “intern-level pay” to viewing them as “worker-level pay” (4). If a company has foreign workers who wish to switch their status from the TITP to the SSW within the company, there is a risk that they will leave for other companies unless offered a pay raise of approximately 30,000 to 50,000 yen per month.

[Industry -Specific Data] Highest Wages in Infrastructure and Finance

The following table shows wages by industry, based on the Ministry of Health, Labour and Welfare’s “2024 Basic Survey on Wage Structure” (5).

 The following table shows wages by industry, based on the Ministry of Health, Labour and Welfare’s

“2024 Basic Survey on Wage Structure” (5).Data shows that higher wages are common in jobs requiring specialized skills or heavy physical work, such as construction. Meanwhile, although base pay is lower in manufacturing and accommodation/food services, night shift and overtime pay help increase overall monthly income.

 3. Essential Rules for Wage Determination and Objective Proof

 Under the SSW, one of the most important aspects companies must handle carefully is the appropriateness of wages. In reviews by the Immigration Services Agency, the key question is not simply whether wages are high or low, but whether they are fair compared to those of Japanese workers. 

Proving “Equal to or Higher Than Japanese Employees”

 Companies must demonstrate that SSW employees receive wages comparable to Japanese workers in the same role. Required documents may include:

　・Wage Regulations (Work Rules): A document that clearly sets forth the rules applied to Japanese employees.

　・Payroll records of comparable Japanese employees: Records of Japanese employees with similar age, years of experience, and skill levels.

It is important to note that simply matching the “base salary” is insufficient. Various allowances paid to Japanese employees—such as bonuses, family allowances, housing allowances, and position-based allowances—cannot be excluded solely because the employee is a foreign national.

 When No Comparable Japanese Employee Exists

 In some cases—such as small businesses or departments made up entirely of foreign workers—there are no Japanese employees within the company to use as a benchmark. In these situations, companies must demonstrate the appropriateness of wages using the following methods.

1.  Reference to the Basic Survey on Wage Structure: Use statistical data published by the Ministry of Health, Labour and Welfare to compare wages with the average wages of Japanese employees in the same region and industry (3)(4).

2.  Examples from other companies in the same industry in the surrounding area: Based on job postings and materials from industry associations, the wages are in line with the regional market rate. 

Subjective or discriminatory wage setting may result in visa rejection or reputational risk among foreign communities.

 4. The Structure of “Total Cost” That Companies Must Understand

 Understanding the “total cost”—which includes various expenses incurred in addition to the base salary and allowances mentioned in the previous section—is essential for companies to plan an appropriate budget.

 Hidden Costs: Legal Welfare Expense, Housing Support, and Travel Expenses

•  Legal Welfare Expenses (Company Share): The company’s share of the Employee’s Pension, Health Insurance, Employment Insurance, and Workers’ Compensation Insurance amounts to approximately 15–16% of the salary. Since the salary levels for SSWs are higher, this burden is greater than that for Technical Intern Trainees.

•  Housing Support: It is common for companies to pay the initial moving-in costs in advance and deduct rent from the trainee’s salary; however, the deduction amount must not exceed the “actual costs.”

•  Travel Expenses: Hiring from overseas involves costs such as airfare and visa fees. Although not required under the SSW, many companies cover these costs to stay competitive in recruitment.

Fees: Registered Support Organizations (SSW) vs. Supervising Organizations (TITP)

 For SSW (i), if a company (accepting organization) is unable to provide support internally, it must outsource support services to a "Registered Support Organization."

 Monthly support fees for the SSW tend to be lower than those for trainees; however, because SSW wages are higher, the total cost is generally greater under the SSW.

5. Important Rules Regarding Pay Slips and Deductions

 Many salary-related disputes with foreign workers arise from a lack of understanding of complex rules such as tax and social insurance deductions.

 Practical Responses to the “Equal Pay for Equal Work" Guidelines

 The “equal pay for equal work” principle, which took effect in 2020 for large companies and 2021 for small and medium-sized enterprises, applies equally to foreign workers under the SSW.

 Unfair differences in treatment directly violate the Labor Standards Act and the Immigration Control Act. In particular, companies must ensure equal treatment with Japanese workers even in details such as commuting allowances and access to facilities like break rooms and changing rooms.

Proper Deductions for Income Tax, Resident Tax, and Social Insurance Premiums - and the Importance of Multilingual Explanations

 Attention must be paid to “resident tax,” which becomes taxable starting in the second year of residence. Since resident tax is not withheld in the first year, many workers misunderstand the monthly deduction of 10,000 to 20,000 yen starting in the second year as a “pay cut.”
Therefore, providing multilingual salary simulations in advance to ensure the worker’s understanding directly contributes to improving retention rates later on.

 Salary Negotiation Techniques and Career Path Presentations to Prevent Employees from Leaving

 Foreign workers under the SSW can change jobs if they find a company with better conditions. Therefore, it is important to present salary increases and career paths for the third and fifth years of employment in advance to prevent the risk of losing employees.

 6. Outlook for 2026 and Beyond: Transition to Employment for Skill Development and Restructuring of the Wage System

 Under the amended law enacted in 2024, TITP will be abolished, and the "Employment for Skill Development" system will begin in 2027, marking a new turning point.

Expected Changes and the Risk of Transfers Under the "Employment for Skill Development"

 Under the new system, workers will be allowed to transfer companies under certain conditions (6).

 This creates the risk that trainees who previously could not change jobs may leave for companies offering better wage conditions. Companies must move away from hiring at the “regional minimum wage” and design attractive wage and benefit packages.

 Wage Planning for Transition to SSW (ii)

 Upon transitioning to SSW (ii), trainees become “highly skilled professionals” who can bring their families to Japan and consider permanent residency (6).
A wage benchmark of 4–5 million yen annually is recommended to position these workers as core, long-term contributors, just like Japanese employees.

 7. Summary: Toward the Sustainable Utilization of Foreign Talent

 While the transition from the TITP to the SSW, and the adoption of the newly established Employment for Skill Development System, present a significant opportunity to address labor shortages, practical challenges—such as responding to legal changes and complex procedures specific to each sending country—are becoming increasingly challenging year by year.

To prevent future issues such as inadequate support for foreign workers or compliance violations, it is essential to provide more appropriate and efficient support, as well as highly transparent salary structures, than ever before.

 CROSSY GLOBAL provides support for job seekers (foreign workers) 1 and for business users such as accepting companies, Registered Support Organizations, Supervising and Support Organizations, and educational institutions (Sending Organization) 2. Please feel free to contact us for consultation. 

CROSSY GLOBAL helps build a more prosperous society across borders through compliant, safe operations and well-matched employment opportunities.

*1 Job seeker portal: https://crossy-global.jobs 

*2 Business portal: https://crossy-global.biz 

 8. List of References and Sources

(1) Immigration Services Agency of Japan: Number of Foreign Nationals with SSW Status (as of the end of June 2025)

  SSW (i) https://www.moj.go.jp/isa/content/001447392.pdf 

  SSW (ii) https://www.moj.go.jp/isa/content/001447393.pdf

 (2) Immigration Services Agency of Japan: Status of SSW System (June 2024)

 https://www.moj.go.jp/isa/content/001428398.pdf

 (3) Ministry of Health, Labour and Welfare: "2024 Basic Survey on Wage Structure" – Wages by Employment Type

 https://www.mhlw.go.jp/toukei/itiran/roudou/chingin/kouzou/z2024/dl/06.pdf

 
(4) Ministry of Health, Labour and Welfare, "2024 Basic Survey on Wage Structure": Wages by Residence Status

https://www.mhlw.go.jp/toukei/itiran/roudou/chingin/kouzou/z2024/dl/09.pdf

 (5) Ministry of Health, Labour and Welfare, "2024 Basic Survey on Wage Structure": Wages by Industry

 https://www.mhlw.go.jp/toukei/itiran/roudou/chingin/kouzou/z2024/dl/05.pdf

 
(6) Immigration Services Agency of Japan: Expert Panel on the Future of the TITP and the SSW Program (Final Report)

 https://www.moj.go.jp/isa/policies/policies/03_00058.html