[Japan] Record minimum pay increase announced

Japan is set to increase the hourly minimum wage to an average of 1,004 yen (S$9.38), exceeding the level proposed by a government panel, as inflation continues to bite, The Business Times reports.

The country’s labour ministry announced on August 18 that Japanese prefectures will boost the lowest pay by an average of 43 yen an hour for the current fiscal year. 

The increase is reportedly the largest since records of wage rises began in 1978. It will come into effect in October.  

The government’s advisory panel had recommended an increase of 41 yen to 1,002 yen for this fiscal year.

Tokyo has Japan’s highest minimum wage in the country, it plans a raise of 41 yen to 1,113 yen. Neighbouring Kanagawa prefecture’s new lowest level will be 1,112 yen after a 41 yen increase. While Okinawa, with the lowest minimum hourly pay, plans a 43 yen hike to 896 yen.

Inflation continues to be a pressure on Japan’s economy and although overall cash earnings for all workers rose 2.3 per cent from a year ago in June, when adjusted for price rises they declined 1.6 per cent. 

The impact of payrolls failing to keep up with inflation has had a knock-on effect on consumer purchasing power. The gross domestic product figures for the last quarter reportedly showed strong external demand driving a surprising annualised growth rate of 6 per cent, however, the data also indicated weakness in business and private spending.

Source: The Business Times

Japan is set to increase the hourly minimum wage to an average of 1,004 yen (S$9.38), exceeding the level proposed by a government panel, as inflation continues to bite, The Business Times reports.

The country’s labour ministry announced on August 18 that Japanese prefectures will boost the lowest pay by an average of 43 yen an hour for the current fiscal year. 

The increase is reportedly the largest since records of wage rises began in 1978. It will come into effect in October.  

The government’s advisory panel had recommended an increase of 41 yen to 1,002 yen for this fiscal year.

Tokyo has Japan’s highest minimum wage in the country, it plans a raise of 41 yen to 1,113 yen. Neighbouring Kanagawa prefecture’s new lowest level will be 1,112 yen after a 41 yen increase. While Okinawa, with the lowest minimum hourly pay, plans a 43 yen hike to 896 yen.

Inflation continues to be a pressure on Japan’s economy and although overall cash earnings for all workers rose 2.3 per cent from a year ago in June, when adjusted for price rises they declined 1.6 per cent. 

The impact of payrolls failing to keep up with inflation has had a knock-on effect on consumer purchasing power. The gross domestic product figures for the last quarter reportedly showed strong external demand driving a surprising annualised growth rate of 6 per cent, however, the data also indicated weakness in business and private spending.

Source: The Business Times