A growing number of workers in Japan now view promotions as punishment rather than achievement. The core complaint: responsibilities multiply while pay increases fail to keep pace.
Japan Airlines (JAL) has decided to tackle this trend head-on by dramatically raising middle management salaries. The airline plans to boost department head annual compensation by roughly 30%, bringing it to a range of $148,000 to $230,000 by 2027. The upper limit matches what entry-level executives typically earn.
JAL already began increasing management pay in 2026, with department heads seeing up to 15% raises and section chiefs getting up to 10% more. Leaders heading critical projects now receive an additional monthly stipend of approximately $920.
Why This Is Happening
The root cause lies in Japan’s demographic crisis. With fewer young people entering the workforce due to declining birth rates, companies compete fiercely for new talent. This competition has driven entry-level and early-career salaries sharply upward.
However, because total labor budgets remain constrained, wages for experienced mid-career professionals have stagnated or even declined. The result: middle managers shoulder more responsibility but receive proportionally less reward, creating widespread reluctance to accept promotions.
Data from Japan’s Ministry of Health, Labour and Welfare reveals the stark disparity. Between 2020 and 2025, workers in their 20s saw wage increases of around 15%, while those in their 30s gained 10-12%. Meanwhile, employees in their 40s received only 5-8% raises, and those in their early 50s actually experienced wage decreases.
A survey by Japan’s Business Federation found that 23% of companies concentrated pay increases on workers under 30, but only 1% focused raises on employees over 45.
Industry-Wide Response
Other companies are following suit across various sectors. Major security firm Secom recently raised management allowances by about 30%. Fukoku Life Insurance increased department head salaries by an average of 15%. Real estate company Leopalace21 also lifted compensation caps for management positions.
Experts caution, however, that salary increases alone won’t solve the problem. Without restructuring the actual authority and roles of middle management, promotion avoidance may persist. Still, narrowing the compensation gap represents an important first step toward changing the perception that “getting promoted means losing out.”