Why Are Consultants Paid So Much? Average Salaries and Estimates by Position and Age

“Do consultants really earn that much? Why are they so highly paid?”
“How much does income vary by position and age?”
These are questions many people have. Consultants are synonymous with high income, yet few people know the specific reasons behind it.
In this article, we explain why consultants earn high salaries, average annual income, estimates by position and age group, and the characteristics and salary differences between foreign-affiliated and Japanese firms in an easy-to-understand way.
We also cover career strategies for increasing your income as a consultant, and the possibility of a salary increase when transitioning into consulting from another field.
Whether you’re aiming to become a consultant or looking to reassess your career, this article will help you think through your next step.
3 Clear Reasons Why Consultants Are Paid So Well

Many people wonder why consultants are paid so well.
Here, we organize the background from three perspectives and explain the mechanisms that lead to high compensation.
1. High Project Fees
One reason consultants earn high salaries is that project fees are extremely high.
Consulting engagements address critical themes that determine a company’s future, such as management strategy and business restructuring. Because specialized expertise is provided for challenges that cannot be solved internally, the fees charged are substantial.
In fact, projects ranging from tens of millions to hundreds of millions of yen are not uncommon. High project fees boost the overall revenue of the firm, and that profit is reflected in individual consultant salaries.
In other words, handling high-value engagements is itself a major factor in achieving high annual income.
2. High Profit Margins
Another reason consultants earn high salaries is that the business model is structured to generate strong profits.
The capital of a consulting firm is its people — unlike manufacturing, there is no need for large capital investment in equipment or raw materials.
Since the primary costs are limited to personnel expenses and office upkeep, the profit margin relative to revenue is very high.
As a result, this efficient business structure underpins the high compensation consultants receive.
3. High Level of Expertise Required
Behind the high salary levels in consulting is the fact that a high degree of specialized expertise is required.
Beyond logical thinking and analytical ability, deep knowledge of specific industries and skills to address management challenges are essential. Such professionals are rare in the market, and companies must pay compensation commensurate with their abilities.
Furthermore, competition among firms to secure top talent is fierce, which naturally drives salaries upward. Possessing highly specialized, rare expertise directly translates into high earning potential.
Average Consultant Salaries: Estimates by Position and Age

Consultant compensation varies significantly depending on position and age.
Here, we explain the overall average annual income for consultants as well as breakdowns by position and age group.
Average Annual Income for Consultants
According to the “Reiwa 7 Basic Survey on Wage Structure,” the average annual income for “Other Management, Finance, and Insurance Professionals,” which includes consultants, was approximately ¥11.34 million.
Compared to the national average annual income of approximately ¥4.78 million, it is clear that the consultant salary level is exceptionally high.
There is also significant variation depending on the type of firm and position — particularly in strategy consulting and foreign-affiliated firms, it is not uncommon to exceed ¥10 million in annual income even in one’s 20s.
Even looking at the average alone, it is clear that consulting is one of the highest-paying professions.
Reference: Reiwa 7 Basic Survey on Wage Structure
Reference: Reiwa 6 Statistical Survey on Private Sector Wages
Average Annual Income by Consultant Position
Looking at average annual income by consultant position, it becomes clear that the system is designed so that income grows significantly in line with the scope of roles and responsibilities.
Position
Average Annual Income
Analyst
¥5M – ¥6M
Consultant
¥6M – ¥10M
Manager
¥10M – ¥15M
Principal
Approx. ¥20M
Partner
¥20M – ¥30M
Even starting a career as an analyst, income rises sharply with each promotion. A notable feature is the large salary jumps that come with advancement.
Average Annual Income by Age Group
Here is an overview of consultant income by age group, based on data from OpenWork.
Age Group
Estimated Average Annual Income
20s
Approx. ¥5.36M
30s
Approx. ¥7.19M – ¥8.84M
40s
Approx. ¥10.15M – ¥11.10M
50s
Approx. ¥11.79M – ¥12.41M
This data shows a trend of significant income growth from one’s 20s through 30s, with top earners reaching around ¥9M in their late 30s.
The income trajectory in consulting follows a structure of “rapid growth in early career, peak in mid-career, and sustained high earnings thereafter,” reflecting a performance-based compensation model where income varies greatly depending on ability and position.
Reference: OpenWork “Consultant Salary Information | Average Salary Rankings by Company, Base Pay, Overtime, Bonuses, and More“
Characteristics and Salary Differences: Foreign-Affiliated vs. Japanese Consulting Firms

When considering consultant compensation, it is important to understand the differences between foreign-affiliated and Japanese firms.
The two differ significantly in compensation structure, performance evaluation, and promotion speed, so it is worth understanding these distinctions in advance.
Foreign-Affiliated Firms: Performance-Driven with High Incentives
Foreign-affiliated consulting firms embrace a strict meritocracy, and their compensation levels tend to be higher than Japanese firms.
Not only is the base salary high, but incentives are significantly added based on project contribution and individual performance. This means even junior staff can earn high compensation.
On the other hand, a demanding evaluation culture of “Up or Out” (promote or leave) exists, making it a world where capability is prized over stability. Foreign-affiliated consulting is well-suited to those who want to grow rapidly while pursuing high rewards.
Japanese Firms: Steady Salary Growth on a Stable Foundation
Japanese consulting firms tend to be more stability-oriented compared to foreign-affiliated firms, with a focus on long-term talent development.
Salaries reflect not only performance but also years of service, with steady incremental raises over time. Many companies also offer comprehensive benefits such as housing allowances and retirement packages, providing a reassuring environment in which to build a career.
While incentives are not as high as at foreign firms, Japanese consulting firms are well-suited to those who prefer a stable work style or want to gain experience within a Japanese corporate culture.
Career Strategies for Increasing Your Salary as a Consultant

As a consultant, how you work after joining a firm can help you grow your income even further.
Here, we explain three representative career paths.
Build Experience and Advance to Senior Positions
The most common way to increase your salary as a consultant is to accumulate results within your firm and advance to higher positions.
By consistently delivering strong project outcomes and developing management capabilities to lead teams, you can advance your career from Manager to Senior Manager and eventually to Partner.
As you rise through the ranks, the scale and responsibility of your engagements increase, and your salary and bonuses grow substantially in step. Consistently delivering results is a reliable path to high earnings.
Leverage Language Skills to Take On Global Projects
Business-level English proficiency is a significant factor in enhancing a consultant’s market value.
Global projects requiring negotiation with international clients or collaboration in multinational teams have a limited pool of qualified candidates, which naturally leads to higher compensation.
Acquiring language skills broadens the range of projects you can handle and directly translates to higher pay.
Language proficiency is also a powerful asset when transferring to overseas offices or making a career move to a top foreign-affiliated firm with better compensation.
Use Your Track Record to Go Independent as a Freelancer
After accumulating sufficient experience and results at a consulting firm and establishing a specialty, going independent as a freelancer is a compelling option.
By contracting directly with clients without going through a firm, your income for projects of similar scale can increase substantially.
However, this requires strong business development skills to consistently win engagements, as well as the self-management ability to see projects through independently — skills that differ from what is needed as an employee at a firm.
Can You Increase Your Salary by Transitioning into Consulting Without Experience?

When aiming to enter consulting from another industry, one of the biggest concerns is whether your salary will go up or down.
The short answer is: a salary increase is possible even without consulting experience, but it comes with risks.
The consulting industry values skills developed in previous roles, so candidates with experience in IT, finance, sales, or similar fields are often evaluated as immediately effective and may be offered salaries that exceed their current compensation.
On the other hand, candidates without consulting experience are often placed at a lower starting position, which can result in a lower salary than their current role. There is also the risk of missing out on salary growth opportunities if one struggles to adapt to a performance-driven environment.
In short, the reality of transitioning into consulting without prior experience is that “a salary increase is possible, but depending on conditions, it may decrease.”
The article below also covers how to prepare for transitioning into consulting without experience, so please take a look.
Frequently Asked Questions About Consultant Work and Salaries

Below, we address common questions about consultant roles and compensation.
What is the average salary at the Big 4?
The Big 4 refers to the following four firms — the world’s largest accounting and professional services organizations with integrated consulting practices. They are characterized by global operations spanning a wide range of services from audit and tax to consulting.
The Big 4 Firms
Deloitte Tohmatsu
PwC Consulting (PwC)
KPMG Consulting (KPMG)
EY Strategy & Consulting (EYSC)
Average salaries at the Big 4 are as follows, showing that earnings exceed ¥6M already in one’s 20s and approach ¥10M by one’s 30s. From the 40s onward, compensation rises further, with a tendency toward sustained high earnings over the long term.

DTC
PwC
KPMG
EYSC
 Age 25
Approx. ¥6.62M
Approx. ¥6.84M
Approx. ¥6.78M
Approx. ¥6.29M
 Age 30
Approx. ¥8.66M
Approx. ¥8.74M
Approx. ¥7.69M
Approx. ¥8.43M
 Age 35
Approx. ¥10.79M
Approx. ¥10.82M
Approx. ¥9.28M
Approx. ¥10.35M
 Age 40
Approx. ¥12.63M
Approx. ¥12.83M
Approx. ¥11.13M
Approx. ¥11.85M
 Age 45
Approx. ¥13.81M
Approx. ¥14.48M
Approx. ¥12.81M
Approx. ¥12.80M
 Age 50
Approx. ¥14.16M
Approx. ¥15.59M
Approx. ¥14.16M
Approx. ¥13.12M
Which consulting firms top the salary rankings?
Here are the highest-paying firms in the consulting industry, presented in ranking format.
Rank
Firm Name
Average Annual Income
 1st
Groving
Approx. ¥19.50M
 2nd
Boston Consulting Group
Approx. ¥16.93M
 3rd
McKinsey & Company
Approx. ¥15.84M
  4th
Gartner Japan
Approx. ¥15.10M
 5th
Bain & Company Japan
Approx. ¥14.64M
All of these firms maintain very high compensation levels, backed by factors such as meritocracy and global operations.
Strategy consulting firms such as BCG and McKinsey are particularly popular for their ability to deliver high earnings to junior staff at an early stage.
Reference: OpenWork “Consultant Salary Information | Average Salary Rankings by Company, Base Pay, Overtime, Bonuses, and More“As of September 2025
What does a consultant actually do?
A consultant’s primary role is to analyze the management challenges facing client companies and support them through the proposal and implementation of solutions.
The scope is broad — covering strategy formulation, operational improvement, digital transformation, talent development, and more — and the knowledge and skills required vary from project to project.
Specifically, consultants handle tasks such as on-site research and interviews, data analysis, competitive research, preparation of proposal materials, and presentations to senior management.
A defining characteristic is that consultants are expected not merely to offer advice, but to accompany the client through the execution phase and deliver tangible results.
Who is and isn’t suited to a career in consulting?
People well-suited to consulting are those with strong logical thinking and analytical skills who can persistently tackle problem-solving.
Strong communication skills for collaborating smoothly with clients and team members are also essential. Consulting is a good fit for those who find motivation in environments where results are expected quickly.
On the other hand, those who are easily stressed by uncertainty or who prefer stable, routine work may not be well-suited to consulting.
Since long hours in a performance-driven environment are common, those who are averse to demanding workloads may find it a poor fit.
Conclusion

The high salaries in consulting are the result of a combination of factors, including high project fees, strong profit margins, and the premium placed on specialized expertise. By pursuing promotions and building skills over the course of a career, it is possible to dramatically grow your income.
At the same time, making the leap without prior consulting experience carries risks, so it is important to assess your own experience and strengths and clarify how they can be applied.
ConsulNext.jp provides comprehensive support covering career consultation, application document review, and interview preparation, and has helped numerous professionals transition to consulting firms. If you are aiming to break into consulting, please make use of our services to take your next step.