Bilingual premium

The extra cost of hiring someone with genuine business English as well as functional skill. Also written English premium, language premium.

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

Sources

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General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.