Comparing Salary and Lifestyle in Japan’s Kyoto and Indian IT Jobs: A Comprehensive Guide

As a fresh graduate with a choice to either join a leading Japanese corporation's office in Kyoto or an Indian company, the decision can be daunting. This article delves into three critical parameters: the standard of living, future prospects, and living and working conditions in India versus Japan.

Salary Comparison and Take-Home Income

Let's start by understanding the take-home income and its potential multiples in both countries.

A CTC (Combined Total Compensation) of 6.2 million Yen, which translates to a take-home salary of approximately 3.9 million Yen (around 320,000 INR per month), is quite appealing. This is equivalent to a total annual salary in India of around 9.92 lakhs, making it roughly doubling the starting median salary in India for an Engineering CSE, which is 7.23 lakhs.

Standard of Living

The high take-home salary in Japan translates into a comfortable standard of living. Adding a yearly home allowance of 732,000 Yen, the total monthly income becomes 381,000 Yen (around 3,200 INR per month).

In Japan, the average housing area per person is approximately 34.71 square meters (about 373 square feet) at an average rent of 92,280 Yen per month. This means that about 25% of your salary goes towards housing, which is nearly equivalent to a master bedroom size. In contrast, in Bangalore, the average housing area is 721 square feet, and the monthly rent is 15,604 INR. Even though this is still 25% of your income, the house is twice as large.

The living cost outside rent in Japan, on average, is around 141,000 Yen per month. Therefore, after accounting for housing, you save 148,000 Yen per month, which amounts to 5.3 million Yen over three years (approximately 30.46 lakhs INR in 2026). In Bangalore, your savings are less significant, amounting to 11.10 lakhs INR in three years after earning raises of 10% annually.

Future Prospects

While the salary is impressive, one must also consider the future prospects which include pay rises and career growth opportunities.

After seven years, the median wage in Japan is expected to increase by 48% (to 542,000 Yen per month), while in India, the pay rise is significantly higher at 126% (resulting in a median take-home salary of 1.165 lakhs per month in 2026). Assuming you move into larger accommodation, your living cost outside rent is expected to be around 206,000 Yen in Japan versus 44,900 INR in Bangalore.

By moving into a 2BHK in Japan (114 square meters) with a rent of 214,000 Yen per month, your monthly savings increase to 122,000 Yen. In India, with a 3BHK house (1105 square feet) and a rent of 31,500 INR, your savings drop significantly to 40,100 INR per month.

Conclusion

Based on the analysis, here are the conclusions:

For a contract of 3 years, join the Japanese corporation in Kyoto to enjoy the full benefits. For a medium-term stay (5 to 7 years or longer), reassess your goals and potentially opt for India's promising IT job market, given the better future prospects.

Assumptions

Kyoto is as expensive as Tokyo in terms of living costs. The data from 2021 for Japan applies to 2023 for India. Starting from an IT job in Bangalore is presumed.

While the salary in Japan is indeed attractive, the future prospects in India present a compelling reason to consider staying and growing in the country.