From April 2024, "Automobile Transportation" will be added as a new residency status for foreign workers in Japan under the Specified Skilled Worker fields. As a result, the taxi industry is now more inclined to actively hire foreign workers. For those foreign nationals interested in working as taxi drivers, salary is probably one of the elements they’re most concerned about. This time, we will thoroughly explain the salaries of taxi drivers by region.

1. The Salary Structure of Taxi Drivers

Before explaining the salaries in each region, let me first explain how the salary system for taxi drivers works.

The salary structure for taxi drivers is different from the typical salary systems and adopts a "performance-based" model. In this system, the more customers you pick up and the more sales you generate, the higher your salary becomes. There are several types of performance-based systems, and we will introduce three representative models. Be sure to check in advance which salary structure the taxi company you are aiming to join adopts.

1. Type A Salary
   This is a fixed pay system, where you receive a predetermined salary regardless of sales or mileage. The salary includes a base salary, various allowances, and bonuses.

2. Type B Salary
   This is a full commission system. Under this system, your salary varies significantly based on your sales and mileage. The more you earn, the higher your salary, making it possible to aim for a high income. However, there's a downside—if you don't earn much, your salary will be lower.

3. Type AB Salary
   In addition to the base salary or fixed pay, this system includes performance-based pay, various allowances, and bonuses. Many taxi companies adopt the AB-type wage system, which helps mitigate the risk of lower earnings during periods of reduced taxi demand and allows drivers to increase their income based on their performance.

2. Average Taxi Driver Salary by Region

The income of a taxi driver changes considerably based on the area, such as metropolitan regions, rural areas, or areas close to tourist spots. This time, we refer to the data released by the "Japan Federation of Basic Taxi Associations," specifically the "2022 Current Situation of Wages and Working Hours of Taxi Drivers," and announce the top 10 average regional salaries.

Ranks 10 to 6

10th: Fukuoka Prefecture (3,498,000 yen)
9th: Okayama Prefecture (3,548,800 yen)
8th: Ishikawa Prefecture (3,605,500 yen)
7th: Shiga Prefecture (3,618,700 yen)
6th: Chiba Prefecture (3,651,400 yen)

Here are the results for ranks 10 to 6. Overall, regions with rich tourist attractions and the ability to attract many tourists are ranked. Particularly, Fukuoka Prefecture is very popular as a tourist destination and serves as the gateway to the Kyushu region, with Fukuoka Airport and Hakata Port attracting many international visitors. Chiba Prefecture is notable for Narita Airport, which is frequently used by foreigners coming to Japan, and the highly popular Tokyo Disneyland, creating demand for transportation from Narita Airport to various tourist spots and hotels across the country.

Ranks 5 to 1

5th: Aichi Prefecture (3,854,000 yen)
4th: Kanagawa Prefecture (3,860,600 yen)
3rd: Hyogo Prefecture (3,991,100 yen)
2nd: Tokyo Metropolis (4,259,800 yen)
1st: Osaka Prefecture (4,371,600 yen)

Here are the results for ranks 5 to 1. As expected, metropolitan areas like Osaka and Tokyo have large populations, leading to a higher number of taxi users and higher potential earnings. Areas in the city center or bustling districts of metropolitan regions tend to have a lot of tourists and frequent nighttime taxi usage, resulting in relatively higher driver income. By understanding where and when taxi use is most active, you can expect further income growth.

3. What is important for taxi drivers to earn money

Looking at data on regional salaries shows that some regions are easier to earn in than others. Salaries differ significantly due to factors like population size, presence of downtowns, or many tourists.
When working as a taxi driver, check not only the annual income of the area you wish to work in but also whether it’s close to tourist spots, urban areas, or business districts with many office workers.

On the other hand, there are taxi companies in areas with smaller populations that can still be profitable. These companies may use dispatch apps to operate efficiently, establish designated pick-up zones, or engage in community-focused operations. Therefore, it's important to check not only the regional characteristics but also the specific features of each taxi company.

4. Foreign Taxi Drivers Earning Over 10 Million Yen a Year

Some taxi companies already have foreign nationals working as taxi drivers.
Interviews with foreign taxi drivers reveal that many taxi companies say, "Taxi driving is a remarkably suitable job for foreigners."
Foreign taxi drivers continue efforts to increase income, with many earning monthly figures of 600,000 to 700,000 yen. Some even earn over 10 million yen annually, meaning it's a job where high income is attainable depending on one's efforts, making it an ideal job for foreign nationals as well.

Conclusion

How did you find it? Do you now understand how taxi drivers earn their income?

Currently, Japan is experiencing a shortage of taxi drivers, leading to long lines at tourist spots and busy areas where people are waiting for taxis. The demand for taxis is expected to continue increasing in the future.

Depending on your work style, there is a chance to earn more than the average annual income, making it a great job for those who want to earn a high salary in Japan. In fact, some drivers earn 600,000 to 700,000 yen a month. To achieve such earnings, you need to increase your knowledge on how to efficiently earn as a taxi driver. Taxi companies provide comprehensive training and guidance for inexperienced foreigners as well. If you have any interest, consider working as a taxi driver in Japan!