Business-level English is scarce in Japan. In the 2025 EF English Proficiency Index, Japan ranked 96th of 123 countries and fell into the lowest band. Among senior professionals who also have deep functional expertise, the combination is rarer still. The bilingual premium is what that scarcity costs: in most functions, asking for real business English adds around 30 to 40% to the cost of a hire. It is not a negotiating tactic. It is the price at which the market clears.
The premium is easy to miss when benchmarking. Mercer, Willis Towers Watson, Korn Ferry and Aon break their Japan data down by job family, level, industry, and foreign versus Japanese ownership, but not by language ability. The premium is built into the foreign-capital figures, because most of those roles need English, but it is never priced on its own. Salary guides from recruitment firms capture it better, because they see actual placements, although their figures are rough.
The pipeline is not growing quickly. With the yen weak, fewer Japanese students study abroad, and most foreign learners of Japanese plateau below the level senior roles need.
What it means for a foreign employer
- Expect offers above the survey number. A common pattern: HR benchmarks against a survey, gets a figure, and then finds offers need to come in 30 to 40% higher. The survey prices the role. The market prices the role plus bilingual scarcity.
- Ask whether you are getting 30 to 40% more value. Sometimes English is genuinely critical. Often it was carried over from the last job description. A strong Japanese-speaking operator paired with a bilingual number two, or with headquarters liaison handled elsewhere, can cost less and deliver more.
- Do not pay for fluency alone. The premium is for someone who can do the job and do it in English. See eigo baka.
- Calibrate with live data. The sharpest read on pay comes from recruiters running the same search now and from candidates who are weighing competing offers.
Sources
- EF English Proficiency Index 2025, Japan country results.
- Methodology of the major Japan salary surveys, which report by job family, level, industry and ownership but not by language.