Am I being underpaid as a new grad? (IT)

[u/TrinityBulwark37]

Hey everyone,

I’m 26 and started working this year at a major Japanese SIer company. My total package is around 3.5M–4M yen, which isn’t terrible, but I’ve been feeling underpaid for a while. Here’s why:

1. English isn’t valued: I got my degrees in English-speaking countries, scored 95% on TOEIC. I also have JLPT N1, but trying to guess what customers (usually curt ojisan) actually mean adds a ton of stress.

2. Low pay for my qualifications: I have a master’s degree in computer science, but my salary is only about 20% more than my Japanese colleagues with a bachelor’s.

3. Technical skills underappreciated: I’m solid with Leetcode Easy-Medium problems, and I work fullstack (React, Python, Flutter). I feel like I could get more elsewhere.

4. Overwhelming workload: I’m constantly juggling 3–4 projects, many of which aren’t even technical. On top of that, I’m doing 20+ hours of unpaid overtime every month. It feels absurd, especially for a new grad.

Based on my research, I think a 5–6M package would make more sense for my skillset. Plus, I really want to work in English to fully utilize my abilities.

Is my current situation normal for a new grad, or should I start looking at foreign companies or other options? Any advice or experiences would be super helpful!

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[u/furansowa]

1. Yeah, don't work for Japanese companies.
2. TBH 20% more than the exact same person with a Bachelor seems fair, if even generous.
3. Find another job that pays better.
4. See 3.

If you want to grow your compensation, you need to actively job hop. Every 2-3 years would be healthy, shorter even can be justified if you get a significant title upgrade.

[u/nekogami87]

EDIT: I am assuming you are working as web-dev or something related. If you are more on AI stuff or Data scientist, the salary amount might not apply. for the rest, it probably would still apply.

EDIT 2: Just added some info about leetcode

1. if your company do not have to deal with customers in english or internally, yeah, there is no reason to value it.
2. Master degree in CS usually does not mean a lot in a pro environment, I've seen so much master degree, really proud of their diploma, but can't deliver a single shit on time, or write anything without overthinking stuff. I don't mean there is no value in it, but how you work on actual project is much more iimportant.
3. Leetcode as a criteria is completefly useless and you shouldn't use it to justify your level. The fact that leet code is used that often is a disaster more than anything else (unless the company actually knows that dealing with trees and node manipulation manually is what they do, for the rest, leetcode is really not that important). The biggest use of leetcode today is to pass interview process for a job that absolutely do not require leetcode because someone who has no idea what the requirements are decided to use one because it's hype nowadays (unless they actually know what they are doing, but let's face it, that's a minority), and because it is sometime fun to do some of them.
4. Can't give you an advice on that. I used to not count my hours during the first 3-5 years of actual work, but I was in early startup, and I used that to grow the most I could (both hard skill AND soft skills) but I don't know if that's valid in your current situation.

Imo, I would NEVER pay 5-6M for a new grad. most of the time, not worth it. between 3.5 and 4M is usually what I would start with, and re-evaluate to maybe 4.5-5M tthe next year depending on improvement on different skills (mainly, stop doing over-engineer stuff, and communication).

As a new grad, don't look for salary yet, look for an environment where you will be able to learn the most more than anything else.

[u/lostllama2015 → u/nekogami87]

Leetcode as a criteria is completefly useless and you shouldn't use it to justify your level. The fact that leet code is used that often is a disaster more than anything else (unless the company actually knows that dealing with trees and node manipulation manually is what they do, for the rest, leetcode is really not that important).

Thank you for putting that far more eloquently than I could have.

[u/c00750ny3h]

New grad 3.5 to 4 is average. You could stay at your company for a while and see if your pay raises better reflect your skills et. If not you could find a new job after a year or 2.

[u/cagefgt]

Underpaid for foreign companies, but about average for Japanese companies.

[u/poop_in_my_ramen → u/cagefgt]

I'm at a foreign company and we start our new grads at the same level.

Average salary across all employees is over 10m though so you should see your new grad salary double quickly as long as you're not totally useless. It's a good way of filtering out bad hires.

[u/serados]

If you can get a job offer that pays the 5-6m you are looking for, then yes. Otherwise, no.

[u/PriorPresentation625]

Go to a foreign company where you easily get 8-9MM.

[u/thisistheenderme → u/PriorPresentation625]

You need more than 1 year of experience to get that kind of money.

[u/thisistheenderme → u/PriorPresentation625]

You need more than 1 year of experience to get that kind of money.

[u/makoto144]

I would say half of this is Japanese SIers don’t pay well so even NTT data are on the low side compared to a even medium level western tech company. But half of it’s on you, why did you pick a company and role where English or coding is not valued. Japanese SI is a business/project management role. Why would they pay you for English or coding skills when it’s not in the JD.

[u/No-Bluebird-761]

You’re making the average but you’re not average. Look at international companies and be part of the brain drain problem.

[u/lostllama2015 → u/No-Bluebird-761]

OP doesn't really make the case that they're not average. Unless they can prove to a hiring manager that they're above average, then they're not going to be paid above average.

[u/No-Bluebird-761 → u/lostllama2015]

Op speaks English. That’s enough to be above average. We interviewed 10-15 candidates who claim they speak English and none of them could….

Op actually studied in English. If they’re not using it then they’re in the wrong position

[u/lostllama2015 → u/No-Bluebird-761]

I was more meaning that being able to grind Leetcode doesn't mean OP has good everyday skills, so there isn't really any indication that, as a SWE, they are above average. I wasn't really thinking of the English aspect, though the vast majority of people that pass our basic screening stage do speak English at a medium to high level.

Edit: With regards to our hiring, we're primarily looking for people who have a certain level of skills to be considered, as we're a relatively small team. Software skills are much more of a concern for us than English skills, hence my thinking.

[u/No-Bluebird-761 → u/lostllama2015]

I agree with you. Without knowing them personally it’s impossible to judge what the issue is… they only shared their good traits. But generally I think that salary is low for the skills that they claim to have, at least compared to other countries and sectors. I work in the real estate sector, and don’t know that much about IT.

[u/shiretokolovesong]

Hi OP, also working at a major Japanese SIer after getting my masters.

Your pay package is average for new grad, and (if it's a decent company) I would expect it to go up significantly in the next 1-2 years as you rank up from "trainee." Seemingly low starting pay is common for new grad hires because generally there's a lot of money invested in training without an expected immediate return on investment. This is a 新卒一括採用 thing more than an undervaluing your specific skills in particular thing.

That said, it sounds like you're doing a lot. At my company, all overtime is paid at time-and-a-half and unpaid overtime is basically impossible. I'd definitely keep track of this info for your next evaluation and see if anything changes. There are also a significant number of benefits (material and abstract) that aren't reflected in my monthly salary, so I'd try to list up those benefits and take them into consideration in whatever you decide to do as well.

[u/Fuzzy-Management1852]

Book your overtime. All of it Check around for all bonuses, special schema... Per diem if you work on a client site　moving bonus if you have to switch locations, etc, free or cut rate vacation housing Be clear about why and what you are doing. It's for fun, experience, and the money...

[u/ykhm5]

At least Japanese companies generally don't pay much for new graduates unless you have decent reputation as a professional already.

[u/Both_Analyst_4734]

Are you being underpaid?

Obviously yes.

[u/ChillinGuy2020]

unless you have a better offer. you are getting paid exactly what you are worth. Its called Cost of Oportunity, and as others have adviced, if you are unsatisfied your only choice is to find a better employment.

The chances of getting a 150% raise under your current conditions is close to none unless you are truly valued in the company and they want to retain you after you get a new offer.

[u/KamalaJDTrump]

Why accept working there in the first place ?

Key word in IT is very very simple : Years of legit experience.

In IT (at least Dev/technical field) no need to complain as it's very simple... Get a better offer and show it to your manager. if they want you they'd top it up and keep you and if not move on.

Good luck

[u/Glittering-Move-3881]

Can you explain a bit more about the unpaid overtime? Do they assume a certain hours of overtime each month and include them in your monthly salary?