[Japan] Minimum wage increase falls far short of workers’ ¥75 target

In Japan, the Central Minimum Wages Council - an advisory body to the Ministry of Health, Labour, and Welfare - recommended raising the nation’s average hourly minimum wage by ¥55 in fiscal 2026, Nippon reports.

Previously, labour representatives had pushed for a ¥75 increase, a significant rise compared with the previous fiscal year. However, corporate management representatives stressed the deteriorating conditions for small and medium-sized businesses due to instability in the Middle East. 

The council reportedly cited the slowing rate of inflation as a factor in its recommendation to fall below the ¥63 rise in fiscal 2025. Should the increase proceed as expected, it will raise the national average hourly minimum wage from ¥1,121 to ¥1,176.

The subcommittee’s guidelines divide prefectures into three categories according to their economic conditions. An hourly minimum wage increase of ¥54 was set for the 6 prefectures in Category A, which includes Tokyo and Osaka, while it was ¥56 for the 28 prefectures in Category B (including Hokkaidō, Hiroshima, and Fukuoka) and the 13 prefectures in Category C (including Akita and Okinawa). 

The wage hike was higher in Category B and C with the aim of addressing economic disparities, together with the severe labour shortages in these areas. The council in each prefecture will decide the exact amount of the wage increases based on guidelines; new wage floors will be introduced from around October 2026.

The new minimum wage will be over ¥1,200 in Tokyo (¥1,281), Kanagawa (¥1,280), and Osaka (¥1,232). It will also be over ¥1,150 in the prefectures of Saitama, Chiba, Aichi, Kyoto, Hyōgo, and Shizuoka. At its lowest, it will reportedly be less than ¥1,100 in a number of prefectures, mainly in Tōhoku, Kyūshū, and Shikoku.

The previous administration of Prime Minister Ishiba Shigeru set a target of raising the national average minimum wage to ¥1,500 by the end of the 2020s, but under Takaichi Sanae, this fiscal year’s basic policy stance has effectively postponed the deadline to the earliest possible date in the first half of the 2030s.

Source: Nippon

In Japan, the Central Minimum Wages Council - an advisory body to the Ministry of Health, Labour, and Welfare - recommended raising the nation’s average hourly minimum wage by ¥55 in fiscal 2026, Nippon reports.

Previously, labour representatives had pushed for a ¥75 increase, a significant rise compared with the previous fiscal year. However, corporate management representatives stressed the deteriorating conditions for small and medium-sized businesses due to instability in the Middle East. 

The council reportedly cited the slowing rate of inflation as a factor in its recommendation to fall below the ¥63 rise in fiscal 2025. Should the increase proceed as expected, it will raise the national average hourly minimum wage from ¥1,121 to ¥1,176.

The subcommittee’s guidelines divide prefectures into three categories according to their economic conditions. An hourly minimum wage increase of ¥54 was set for the 6 prefectures in Category A, which includes Tokyo and Osaka, while it was ¥56 for the 28 prefectures in Category B (including Hokkaidō, Hiroshima, and Fukuoka) and the 13 prefectures in Category C (including Akita and Okinawa). 

The wage hike was higher in Category B and C with the aim of addressing economic disparities, together with the severe labour shortages in these areas. The council in each prefecture will decide the exact amount of the wage increases based on guidelines; new wage floors will be introduced from around October 2026.

The new minimum wage will be over ¥1,200 in Tokyo (¥1,281), Kanagawa (¥1,280), and Osaka (¥1,232). It will also be over ¥1,150 in the prefectures of Saitama, Chiba, Aichi, Kyoto, Hyōgo, and Shizuoka. At its lowest, it will reportedly be less than ¥1,100 in a number of prefectures, mainly in Tōhoku, Kyūshū, and Shikoku.

The previous administration of Prime Minister Ishiba Shigeru set a target of raising the national average minimum wage to ¥1,500 by the end of the 2020s, but under Takaichi Sanae, this fiscal year’s basic policy stance has effectively postponed the deadline to the earliest possible date in the first half of the 2030s.

Source: Nippon