Sega raises annual employee salaries in Japan by 15%

Announced by Sega earlier today, the company is increasing employee salaries in Japan in an effort to “further stabilize employee income and create a more comfortable working environment, as well as to further strengthen its global competitiveness.”

The revision to Sega’s compensation system will take effect July 1, 2023, and will see the average monthly salary of existing employees increase by approximately 30 percent. In terms of annual salary, the average increase will be about 15 percent.

SEGA SAMMY HOLDINGS INC. (the Company) hereby notified that SEGA CORPORATION, a major subsidiary of the Company, has announced that it will initiate revision to its compensation system to invest in human resources in order to further stabilize employee income and create a more comfortable working environment, as well as to further strengthen its global competitiveness.

Specifically, effective on July 1, 2023, SEGA plans to increase the average monthly salary of existing employees by approximately 30% (*) by raising the base salary and increasing the ratio of base salary within annual salary by incorporating part of bonuses. As a result of this revision, the initial salary for university graduates will increase from ¥222,000 to ¥300,000, an increase of approximately 35%.

*On an annual salary basis, the average increase rate is about 15%
*We plan to introduce an advance payment system for retirement allowances (selective system), and the rate of increase will differ depending on this option

As outlined in the announcement from Sega, the company will increase its initial salary for university graduates as well by around 35 percent, and there are plans to introduce an advance payment system for retirement allowances. In terms of why Sega is increasing annual salaries by around 15 percent, the rise in inflation seen in countries like Japan have created economic challenges. With this, the Prime Minister of Japan, Fumio Kishida, recently called for companies to increase worker pay.

The response to this has included companies like Nintendo raising the base salaries of its workers in Japan by 10 percent. Moving forward, it’ll be interesting to see what other Japanese companies will decide to raise employee salaries, along with whether salary increases will be seen in other countries suffering from inflation like the United States.

Now that you’re caught up with Sega increasing employee salaries in Japan, be sure to brush up on other Sega news including our review of Like a Dragon Ishin!, and the previous update to Sonic Frontiers which fixed an assortment of map bugs, game crashes, and glitches.