In Japan, the majority of prefectures that have reported their minimum wage plans so far this year are breaking with a labour ministry panel on how much they should increase the hourly rate by, The Japan Times reports.
These prefectures are opting to pay above the recommended minimum, as inflation continues to impact pay and cause a decline in real incomes in Japan.
Japan’s minimum wage recommendation is established by a ministry panel during the summer for implementation by each of the nation’s 47 prefectures in the autumn. Earlier this month, the panel called for an average minimum wage increase of ¥63 ($0.43), or about 6 per cent.
This is reportedly a record increase. The current national average is ¥1,055. The highest rate is Tokyo's ¥1,163 and the lowest, Akita Prefecture's ¥951. The original plan would take the minimum wage in all prefectures above ¥1,000 for the very first time.
Earlier this month 28 prefectures had determined their minimum wage increases for this year, and of those, 21 went above the ¥63 target.
Tottori Prefecture is set to increase its minimum by ¥73, up 7.6 per cent, to ¥1,030. Shimane Prefecture will increase its minimum wage by ¥71, and Ishikawa Prefecture, by ¥70.
Minimum wage increases are a significant economic agenda item for the administration of Prime Minister Shigeru Ishiba. It has emphasised the importance of higher wages to help households make ends meet as inflation remains high. It is currently above 3 per cent.
Real wages have been falling for years in Japan.
The prime minister reportedly wants to increase the nationwide average minimum wage to ¥1,500 by 2029. The rise would demand a 7 per cent increase every year, higher than the record increase this year.
Source: The Japan Times
In Japan, the majority of prefectures that have reported their minimum wage plans so far this year are breaking with a labour ministry panel on how much they should increase the hourly rate by, The Japan Times reports.
These prefectures are opting to pay above the recommended minimum, as inflation continues to impact pay and cause a decline in real incomes in Japan.
Japan’s minimum wage recommendation is established by a ministry panel during the summer for implementation by each of the nation’s 47 prefectures in the autumn. Earlier this month, the panel called for an average minimum wage increase of ¥63 ($0.43), or about 6 per cent.
This is reportedly a record increase. The current national average is ¥1,055. The highest rate is Tokyo's ¥1,163 and the lowest, Akita Prefecture's ¥951. The original plan would take the minimum wage in all prefectures above ¥1,000 for the very first time.
Earlier this month 28 prefectures had determined their minimum wage increases for this year, and of those, 21 went above the ¥63 target.
Tottori Prefecture is set to increase its minimum by ¥73, up 7.6 per cent, to ¥1,030. Shimane Prefecture will increase its minimum wage by ¥71, and Ishikawa Prefecture, by ¥70.
Minimum wage increases are a significant economic agenda item for the administration of Prime Minister Shigeru Ishiba. It has emphasised the importance of higher wages to help households make ends meet as inflation remains high. It is currently above 3 per cent.
Real wages have been falling for years in Japan.
The prime minister reportedly wants to increase the nationwide average minimum wage to ¥1,500 by 2029. The rise would demand a 7 per cent increase every year, higher than the record increase this year.
Source: The Japan Times