JR East will raise annual personnel costs at its core company by more than ¥27 billion as part of an overhaul of its human resources and pay systems, the company said. The reform, begun in fiscal 2022, is built around a plan looking 10 years ahead.
The company had revised its systems several times but kept the core framework inherited from the old Japanese National Railways. That left two problems, according to the company: it could not reflect employees' motivation and performance in evaluations quickly, and a diverse workforce was not fully able to contribute.
Higher starting pay for graduates
For university graduates living in Tokyo, the starting monthly salary for general-track employees rises to ¥300,000 from ¥275,300. For regional general-track employees it rises to ¥285,000 from ¥265,755.
A public relations official said the increase was meant "to secure recruiting competitiveness, mainly for technical employees." To prevent new hires from being paid more than existing staff, the company will add an amount based on years of service to existing employees' job-ability pay as a transitional measure.
Raises tied to role and growth
Base pay becomes "job-ability pay," on the reasoning that employees grow by doing their jobs and that this growth drives the company's growth. Annual raises are divided into six categories by level of responsibility, so that a year's effort, growth and results can be reflected in pay in finer detail.
Qualifications useful to the business also earn a fixed addition to job-ability pay rather than a one-off allowance. The company plans to cover more than 20 qualifications, including professional engineer, first-class chief electrical engineer and real estate appraiser. The aim, the official said, is "to recruit and retain people with advanced technical skills and expertise."
New allowances for children and housing
The company is also creating allowances for duties that were not previously covered, based on each employee's role. A child allowance of ¥20,000 per child and a housing allowance based on where the employee lives will be introduced.
The original article was published on October 31, 2025, and the descriptions above are as they stood at that time.