Cost of Living in Japan for Indian Graduates

A career overseas has always been a dream for most graduates across India as it offers better career growth, higher salary, and better lifestyle, and an opportunity to gain hands-on experience about the latest technologies and services. In the current business landscape that is evolving and volatile, Japan has emerged as a top career destination for foreign workers, especially Indians. This blessing in disguise is due to severe labour shortages accelerated by limited youth population and declining birth rates.

Before deciding to pursue a career abroad, it is necessary to understand the cost of living in Japan as Indian graduate to make informed decisions on how much the salary is necessary to manage the expenses without compromising on quality of life. Let’s go!

Why Japan is an Attractive Career Destination for Indian Graduates?

Indian graduates and professionals have aspired to have a career abroad for many years since it offers a better salary package, secure future, and higher standard of living.

Usually, the USA, Europe, and Australia, are the preferred locations for Indian graduates to fulfil their career dreams for many years. However, Japan has surpassed them and now holds the status as the most preferred career destination for Indian graduates.

Here are the reasons that make Japan an attractive career epicentre for Indian graduates:

1. Japan stands out from other overseas countries

When choosing a country for a career abroad, along with a lucrative salary package, professionals look at safety, cultural values, lifestyle, cost of living, immigration policies and career growth. Here’s how Japan fares in these aspects.

• Work-life balance: Most companies operating Japan are currently placing a lot of emphasis on work-life balance to mitigate ‘overworking culture” to ensure employees stay happy during and after office hours leading to higher productivity and long-term association.
• Job stability and security: Japan’s unemployment rate is among the lowest in the world with just 2.5%. Unlike Western countries where layoffs are common, Japan, on the other hand, values long-term employment and wants employees to work for many years in one company.
• Cultural similarities with India: Both Japan and India value traditions, respect seniority, and enjoy celebrating festivals. This makes adapting to Japanese life much easier for Indians when compared to other foreign professionals.

2. High Demand Indian Talents

Japan is currently at a cross roads with aging population and stunted economic growth due to severe labour shortages, especially in sectors like IT, engineering, healthcare, and finance. By 2035, Japan will 3.84 million workforce deficits in all sectors of business.

As a countermeasure to fill these talent gaps and execute growth initiatives, Japanese private and public companies are looking at recruiting foreign nationals in significant numbers, especially from India. It is a great opportunity for Indian graduates with technical expertise and language skills to secure a lucrative career in Japan.

3. Competitive Salary Package & Benefits

Japanese companies offer lucrative compensation packages combined with numerous benefits with an average monthly salary being approximately ¥545,000 (Rs. 3.06 Lakhs). The package includes annual bonuses, social security, health insurance, and transport allowances. Compared to other countries, the cost of living in Japan for Indian​ is most affordable even in top cities.

4. Government Support and Visa Opportunities

Japanese government has made significant changes modifications to their immigration restrictions and are offering lucrative visa programs for individuals and dependents to attract overseas talents, especially from India. Some of the migrant visa programs offered for Indian professionals include SSW (Specified Skilled Worker a.k.a ‘Tokutei Gijutsu’), skilled, and highly skilled professional visas. These initiatives eventually lead to permanent residency, encouraging Indian graduates to work for long term and gain financial stability.

What are the Average Living Expenses in Major Japanese Cities?

Here is the average cost of living in Japan for Indian​ graduates in major cities.

1. Cost of Living in Tokyo

2. Cost of Living in Kyoto

3. Cost of Living in Osaka

4. Cost of Living in Yokohama

What are the Accommodation Costs for Indian Graduates in Japan?

The cost of living in Japan for Indian​ graduates will be greatly impacted by the accommodation choices. However, rental house or apartment expenses in Japan vary based whether you are living in cities or in rural areas and housing type such as single or shared.

In major cities where there are huge clusters of companies and offers high end lifestyles, monthly rental costs for a single-room (equivalent to 1-BHK) apartment ranges from approximately ¥50,000 to ¥80,000 (Approximately Rs. 30,000– Rs. 50,000). Alternatively, shared accommodations or hostels with colleagues, friends or other office goers can be more affordable which costs around ¥30,000–¥50,000 (Approximately Rs 18,000- Rs. 30000).

Along with rent, Indian graduates seeking accommodation in Japanese cities might have to bear initial move-in costs, security deposit, and agent fees which can be equal to 2–4 months of rent. Most Indian graduates prefer shared housing to balance monthly expenses and save money for the future.

For further savings in accommodation, you might have to move to the outskirts and rural areas for relatively more affordable housing. Proper planning helps manage rental expenses effectively while enjoying a comfortable stay in Japan.

What are Daily Living Costs? Food, Transport, and Essentials

The daily living costs create a significant impact on the cost of living in Japan for Indian​ graduates. Here is an estimated table of daily living costs in terms of food, transport, and essentials on a monthly basis in Japan. Additionally, these costs will vary based on whether it is a metropolitan city or rural area located on the outskirts of their major industrial hubs.

What are the Average Costs for Healthcare, Insurance, and Utility Bills in Japan?

5 Budgeting Tips for Indian Graduates in Japan

Here are 5 tips to reduce the cost of living in Japan for Indian​ Graduates:

1. Opt for Shared Accommodation Instead of an Individual Renting

As an Indian graduate working in Japan, you can optimise monthly rent by choosing shared housing stays or hostels. Through this arrangement, you can avoid high upfront costs and also share expenses for utilities with other co-tenants. Additionally, you can build a friend network for socialising when you opt for shared accommodation.

2. Cook at Home Regularly

Finding Indian cuisine serving restaurants in Japan can be challenging and expensive especially in major cities. Alos, dining out on a regular basis can increase the living expenses significantly. Therefore, cooking at home saves money and helps in maintaining a healthy diet. Alternatively, Bento boxes (Japanese single-portion meals) are an affordable option while travelling or as a lunch meal.

3. Use Monthly Public Transport Passes

As an Indian professional starting a career in Japan, it is advised to use public transport services at the initial stages to reduce the living costs to some extent. Also, you can buy monthly commuter passes for trains and buses to travel to offices or weekend shopping. They offer significant discounts compared to daily tickets and are essential for budget-conscious city commuting in Japan.

4. Track and Limit Subscriptions

It is better to avoid unnecessary mobile, streaming, or shopping subscriptions. Use free or discounted subscription plans whenever possible. Regularly reviewing your digital spending can help you minimise costs as you know ” little drops of water make the mighty ocean”.

5. Shop Smart in Bulk and Seasonally

It is ideal to buy groceries and toiletries for regular use from stores that offer regular discounts and reduced prices on bulk purchases. Also, shop for seasonal produce as it is fresher, cheaper, and widely available at local supermarkets across Japan.

How can Alp Help Build a Career in Japan?

There are two ways an Indian graduate can get an opportunity to pursue a career in Japan. In the first approach, they must join a Japanese company and wait for their opportunity for an onsite opportunity. The second and smarter approach is to learn the Japanese language and clear the JLPT (Japanese Language Proficiency Test) N2 level exam and then try to get an opportunity to work in Japan as a bilingual expert.

ALP Consulting, a leading bilingual recruitment agency offers an end-to-end career development program to help Indian graduates and professionals to realise their dream of a successful career in Japan. Alp’s program combines education, culture, Japanese language training, internship, and placement support in Japan. The career development program in Japan offered by ALP includes the following steps:

• Internship program of 4-6 months in India after completion of graduation and N4 level to provide real-world exposure to Japanese language usage and culture.
• Comprehensive training for N3 level JLPT exam.
• After N3 certification ALP will set up interviews with Japanese clients.
• Post selection, training for the N2 level JLPT exam, client-specific skills, and Japanese work culture will be provided for candidates during the visa processing period (2-3 months).
• Alp will assist in visa assistance and onboarding support for the seamless transition towards the new role and life in Japan.

Frequently Asked Questions (FAQs)

1. Is Japan expensive for Indians?

When compared to Western countries like the US, UK, Australia, etc., Japan is less expensive for Indian graduates seeking a career in Japan.

2. What is a good salary in Japan for Indians?

A good salary for Indian graduates working in Japan for a comfortable life is ¥ 545,000 (Rs. 3.06 Lakhs).

3. Can Indian graduates work part-time in Japan?

Yes, Indian graduates can work part-time in Japan provided a permit called ” Shikakugai-Katsudokyoka” is obtained from the Japanese government.

4. What are some ways to reduce living expenses in Japan?

Some tips to reduce the cost of living in Japan for Indian graduates include opting for shared accommodation, using monthly public transport passes, preparing food at home regularly, shopping at discount stores, tracking and limiting subscriptions, etc.