Major electronics firms in Japan are reconsidering their practice of paying uniform starting salaries based on educational backgrounds.
The companies plan to pay starting salaries that vary depending on skills and experiences to new hires who have joined immediately after graduating school.
The change comes as electronics companies face increased competition for talented technology workers.
Panasonic Connect will offer varying starting salaries to new employees, beginning with those who join the company next spring.
The Panasonic unit will offer higher starting salaries to new hires who have been involved in setting up a company or have tech-related credentials.
The starting salaries of those who joined the company this spring were ¥270,000 ($1,800) per month for university graduates and ¥305,000 for those with a master’s degree.
For those joining the company in the spring of 2025 with past startup experiences or tech skills, Panasonic Connect plans to pay an additional 10% to 20% on top of this year’s starting salaries.
Still, Panasonic Connect expects only a few people to receive the additional salaries initially.
“There are still many students who want to acquire specialized knowledge after they join the company,” said Nobuhiro Shinya, Panasonic Connect’s chief human resources officer.
Fujitsu will scrap its uniform starting salaries in April 2026. New graduates are expected to receive starting salaries of between around ¥315,000 and ¥385,000 based on the results of their research while in school and long-term internship experience.
“We have to put an end to the idea that starting salaries are the same for everyone,” said a senior official at a major electronics company.
