Tokyo firm to set starting salary for new graduates at ¥1 mil per month
A Tokyo-based real estate developer, Kasumigaseki Capital Co., plans to offer new graduates a monthly starting salary of 1 million yen, nearly four times the national average, to attract talent in entrepreneurship and AI.
Intelligence analysis by Gemini 2.5 Flash
Kasumigaseki Capital, a Tokyo real estate firm, is making headlines by offering new graduates a groundbreaking 1 million yen monthly starting salary, significantly higher than Japan's average. This strategy targets individuals with expertise in entrepreneurship and AI, reflecting a broader ambition to shift towards ability-based compensation in Japan and retain domestic talent.
A company in Japan that builds buildings is offering new kids fresh out of school a super big paycheck, like getting a million yen every month! That's way more than most grown-ups start with. They're doing this to find really smart people who are good at new ideas and computer brains, hoping to keep clever folks from leaving Japan for jobs in other countries. It's like offering the best player on a sports team a huge prize to stay and play for your team.
Analysis
Kasumigaseki Capital Co
Kasumigaseki Capital Co., a Tokyo-based real estate developer, is making a significant move in Japan's recruitment landscape by offering an unprecedented starting salary to new graduates. This bold strategy aims to attract top-tier talent, particularly those with specialized skills in entrepreneurship and artificial intelligence, areas crucial for future growth and innovation. The company's proactive approach signals a potential shift from traditional, seniority-based compensation models prevalent in Japan.
The firm's decision to set such a high benchmark for new hires reflects a strategic investment in human capital. By positioning itself as a highly attractive employer, Kasumigaseki Capital seeks to gain a competitive edge in securing individuals who can drive its business forward. This move also highlights the increasing demand for specific, high-value skills in the Japanese market, pushing companies to rethink their recruitment incentives.
1 Million Yen
The monthly starting salary of 1 million yen offered by Kasumigaseki Capital is nearly four times the national average for new university graduates, which stood at 262,300 yen in June 2025. This substantial difference underscores the company's commitment to attracting exceptional individuals and its recognition of the market value for specialized expertise. The offer is among the highest starting salaries ever reported by a domestic Japanese company.
This high compensation package is specifically designed to draw talent proficient in entrepreneurship and artificial intelligence, fields where global competition for skilled professionals is intense. The company's existing employees already earn an average annual salary of around 17 million yen, indicating a culture of competitive remuneration. Kasumigaseki Capital plans to formalize a recruitment system where starting salaries are determined by individual ability and market value, moving away from uniform entry-level pay.
Taichi Yaguchi
Taichi Yaguchi, the senior vice president of the president's office and head of recruitment at Kasumigaseki Capital, emphasized that a 1 million yen starting salary is "not an exceptional level in Europe and the United States." This statement provides crucial context, suggesting that the company views its offer not as an extravagance but as a necessary step to align with international standards for highly skilled professionals. Yaguchi's perspective highlights a recognition that Japanese companies need to compete globally for talent.
Yaguchi also expressed a broader hope that ability-based pay systems would become more widespread among Japanese companies. This aspiration is driven by a desire to prevent skilled talent from leaving the country in search of better compensation and opportunities abroad. The company's initiative, therefore, serves not only its own recruitment needs but also as a potential catalyst for a wider transformation in Japan's corporate compensation practices, aiming to retain valuable human resources domestically.
Key points
- Kasumigaseki Capital Co. will offer new graduates 1 million yen per month starting April next year.
- This salary is nearly four times the national average for new university graduates (262,300 yen in June 2025).
- The company seeks talent with expertise in entrepreneurship and artificial intelligence.
- The initiative aims to introduce an ability-based recruitment system and prevent talent from leaving Japan.
- Around 1,300 people applied for positions starting in spring 2027, with about 10 receiving offers.
This bold move by Kasumigaseki Capital could inspire other Japanese companies to adopt more competitive, ability-based salary systems, fostering innovation and preventing skilled talent from seeking opportunities abroad. A widespread shift could revitalize Japan's labor market and boost its global competitiveness in key sectors like AI.
The initiative might remain an isolated case, failing to significantly impact the broader Japanese labor market, especially if other companies are unwilling or unable to match such high salaries. It could also lead to increased competition for a small pool of highly specialized talent, potentially exacerbating wage disparities without addressing systemic issues.