Tokio Marine Announces Significant Increase in Starting Salaries for New Graduates

In a strategic move to address ongoing labor shortages, Tokio Marine & Nichido Fire Insurance has revealed plans to elevate the starting monthly salary for university graduates joining the company in April 2026 to as much as ¥410,000. This decision comes as part of a broader initiative to attract and retain talent within the competitive Japanese labor market.

According to sources, the pay increase will be applicable to career-track employees who are willing to relocate to distant areas for work. In such cases, these employees could see their monthly salaries rise by approximately ¥130,000, significantly enhancing the current maximum starting salary of ¥280,000.

The anticipated changes will formalize after discussions with the labor union, ensuring that employee interests are taken into account. As part of this restructuring, Tokio Marine plans to eliminate area-based career-track positions, which restrict job locations, starting in fiscal 2026. Instead, the company will standardize recruitment processes to focus exclusively on general career-track positions.

For new hires who prefer not to relocate, the starting salary will remain at around ¥280,000. This policy shift mirrors a growing trend among major Japanese corporations, which are increasingly raising entry-level salaries to secure skilled labor amid a tightening workforce.

For instance, Sumitomo Mitsui Banking has announced an increase in its starting monthly salary for new university graduates to ¥300,000 for fiscal 2026, while Meiji Yasuda Life Insurance will raise its starting pay to ¥332,000, inclusive of fixed overtime compensation, in fiscal 2025.

This shift towards higher salaries reflects the intensifying competition for talent as companies strive to enhance their workforce capabilities and ensure long-term success in a challenging economic environment.