Economy Minimum wage Set to rise 6% to ¥1,118 in record increase

Japan's minimum wage is set to see a record increase this year, offering a bit of relief to low-income earners struggling with rising prices and everyday living costs. On August 4, the Central Minimum Wages Council, which advises the labour ministry, recommended raising the national average hourly wage by ¥63, from ¥1,055 to ¥1,118 (about $7.60). This 6% increase would be the most significant jump in Japan's history, surpassing last year's 50-yen hike.

Although each prefecture sets its wage levels, most tend to follow national guidance—and some may even go higher, as they did last year. Wages already vary by region, with Tokyo currently offering the highest rate at ¥1,163, and Akita the lowest at ¥951. The proposal came after a meeting of a subcommittee made up of representatives from labour unions, business groups, and academic experts.

The Central Minimum Wages Council decides which of three economic categories a prefecture falls under—A , B or C—and issues guidelines specific to that ranking. Tokyo, for example, is in group A. This year, both A and B categories received the same recommendation: a raise of ¥63. C-ranked prefectures, the economically weaker group, were given a recommended increase of ¥64. This is the first time the increase for C-ranked areas has exceeded that for A and B ranks. It is seen as a bid to narrow regional gaps in wages. Regional minimum-wage councils will now use these guidelines to determine the actual wage in each prefecture. Revisions will be approved in the fall.

Click to expand...

Do most "minimum wage" jobs only pay minimum wage? Seems like they'd have to pay more to attract the limited labor force.