Minimum Wage Hike Slows Down
Central Minimum Wages Council reached a deal on the average of minimum wage for workers in Japan in 2026 at 1,176 yen per hour, which rose by 55 yen (4.9 percent) from the previous year. Although the government of Japan has a target for minimum wage at 1,500 yen, the gain toward it gets smaller, reflecting recent slowdown of consumers price hike. It is likely that momentum for wage hike can be declining in Sanae Takaichi administration. Every prefecture sets its own minimum wage in the fall, which indicates the lowest limit of hourly wage for an employee. A minimum wage is determined based on consideration of workers’ quality of life, average salary of ordinary people and solvency of companies. Central Minimum Wages Council decides a guideline for minimum wage hike in advance to local prefectural councils start discussion. Last year, the central council presented 1,118 yen per hour for average of minimum wage, which marked 63 yen (6.0 percent) of increase from the pr...