Minimum wage likely to rise by 6% to 1,118 yen, a record increase
On Aug. 4, the Central Minimum Wages Council, an advisory panel to the labor ministry, decided to recommend an increase of 63 yen or 6 percent, raising the national hourly minimum wage to 1,118 yen ($7.60) from 1,055 yen at present.
The recommendation, which is issued in the form of guidance, surpasses last year's record increase of 50 yen, or 5 percent, and marks the largest hike in Japanese history.
Prefectures are not obligated to match the recommendation. However, they may also exceed it, as some did last year.
The recommendation came after a meeting the same day by the council's subcommittee, which comprises labor and management representatives as well as scholars as public-interest figures.
The minimum wage varies between administrative regions, with employers in Tokyo paying the most, at 1,163 yen, and those in Akita Prefecture paying the least, at 951 yen.
If wages rise in line with the guideline, the minimum wage will surpass 1,000 yen in all prefectures for the first time.
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 yen.
C-ranked prefectures, the economically weaker group, were given a recommended increase of 64 yen.
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.
Last year, local councils exceeded the central council's guidelines for many prefectures.
For example, the increase in the minimum wage of Tokushima Prefecture exceeded the council's guideline by 34 yen.
So, the national weighted average minimum wage suggested by the central council may end up higher if local councils decide to move in that direction.
During this year's council discussions, labor representatives cited two factors in demanding a significant increase.
The first was rising prices, which are being felt nationwide. The second was a strong average base salary hike of 5.25 percent for permanent employees of companies, which was realized in this year's 'shunto' spring wage negotiations. Permanent employees often are not those who receive the minimum wage.
Prime Minister Shigeru Ishiba's administration has set a goal of raising the national average minimum wage to 1,500 yen by the end of 2029. To meet this goal, it will need an average annual increase of 7.3 percent.
Ryosei Akazawa, the minister for economic revitalization, is in charge of wage increases to meet the 2029 goal. He has been pushing for larger increases in meetings with members of economic organizations.
Employer representatives understand the need for wage increases, but they pushed back. They pointed out that companies differ in their abilities to support wage increases, depending on their sizes and industries. After all, the companies themselves are being slammed by higher prices.
This resistance meant it was difficult to consider a hike of more than 6 percent. As if to underscore the complicated talks, the subcommittee held seven rounds of talks to decide the guidance, the most since 1981.
The central council examined data such as the 6.4 percent year-on-year increase in the consumer price index for food, which is an average from October 2024 to June 2025.
It also reviewed the 6.7 percent increase for items typically purchased about once a month. Both figures were used to try to persuade the employers' representatives.
Ultimately, the guideline was finalized with an emphasis on the pain that low-income earners experience when essential goods cost more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
11 minutes ago
Japan Agriculture Min. Koizumi Visits Yasukuni Shrine
Tokyo, Aug. 15 (Jiji Press)--Japan's Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi visited Yasukuni Shrine in Tokyo on Friday, the 80th anniversary of the country's surrender in World War II. Meanwhile, Prime Minister Shigeru Ishiba made a "tamagushi" ritual offering at the Shinto shrine in his capacity as president of the ruling Liberal Democratic Party while refraining from paying a visit. He paid for the offering through a representative. Koizumi's visit marked the sixth consecutive year of a Japanese cabinet minister visiting the war-related shrine on the anniversary. The shrine, located in the Japanese capital's Chiyoda Ward, is regarded as a symbol of Japan's past militarism by neighboring countries such as China and South Korea as it enshrines Class-A World War II criminals along with the war dead. It is the first time that a minister of the Ishiba cabinet was confirmed to have visited Yasukuni Shrine on special occasions, including its spring and autumn festivals as well as the war-end anniversary. Ishiba took office last October. [Copyright The Jiji Press, Ltd.]
Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
South Korea President Calls for Ties with Japan in Speech Marking Anniversary of Country's Liberation from Japanese Rule
SEOUL — South Korean President Lee Jae Myung expressed his desire to deepen ties with Japan in a speech at a ceremony in Seoul marking the anniversary of the country's liberation from Japanese rule. 'Guided by the principle of pragmatic, national interest-focused diplomacy, we will seek forward-looking, mutually beneficial cooperation with Japan while holding frequent meetings and frank dialogue through shuttle diplomacy,' Lee said. For the first time since becoming president, Lee is set to visit Japan on Aug. 23-24 and meet with Prime Minister Shigeru Ishiba. Regarding historical issues between the two countries, Lee said, 'I hope that the Japanese government will squarely face up to our painful history and strive to maintain trust between the two countries.' As for North Korea, Lee emphasized the importance of restoring trust to ease tensions, expressing hope that Pyongyang will reciprocate Seoul's efforts.
The Mainichi
an hour ago
- The Mainichi
Japan PM vows to pursue peace, be mindful of 'remorse' on WWII anniv.
TOKYO (Kyodo) -- Prime Minister Shigeru Ishiba on Friday vowed to pursue peace while firmly keeping in mind the lessons from and "remorse" over World War II, as Japan marked the 80th anniversary of its surrender in the war. Speaking at a memorial ceremony for the war dead in Tokyo, Ishiba said Japan will never again take the path to war and stressed the need to pass down "painful" memories of the war to future generations as survivors continue to age. He became the first Japanese leader since 2012 to use the word "remorse" at the annual commemoration ceremony. Following the precedent set by his recent predecessors, however, he did not mention Japan's wartime aggression and the suffering it caused across Asia. "We should never repeat the devastation of war. We will never ever make a mistake in choosing the path to take," Ishiba said at the ceremony held at the Nippon Budokan arena, his first as premier. "The remorse and lessons from that war should once again be engraved deeply in our hearts," he said. A moment of silence was observed at noon, the time when 80 years ago Emperor Hirohito declared his country's surrender in a radio broadcast. Emperor Naruhito, accompanied by Empress Masako, also expressed "deep remorse" at the memorial, saying the calamity of the war should never be repeated. Participants, including about 3,400 family members of those killed, mourned around 3.1 million casualties of the war in Japan. The number includes victims of the U.S. atomic bombings of Hiroshima and Nagasaki. The passing down of wartime experiences has taken on greater urgency due to the aging of survivors. For the first time, more than half of the participants at the memorial ceremony were born after the war. Ishiba chose not to issue a memorial statement for the 80th anniversary on Friday, unlike past leaders who released statements on the 50th, 60th, and 70th anniversaries. These statements have been closely scrutinized by other Asian nations that suffered under Japan's wartime aggression. Japan has spent the decades since the war committed to promoting peace under its war-renouncing Constitution, which permits the use of force only for self-defense. Still, wartime history has long strained Japan's relations with China and South Korea. China fought what it calls the 1937-1945 War of Resistance against Japanese Aggression, while the Korean Peninsula was under Japanese colonial rule from 1910 to 1945. The United States, which fought fierce battles with Japan after its 1941 attack on Pearl Harbor and later dropped atomic bombs on Hiroshima and Nagasaki in 1945, has become Japan's closest security ally since the war. At ceremonies last week marking 80 years since the atomic bombings, Ishiba stressed the need for Japan to work toward a world free of nuclear war and nuclear weapons. Russia has brandished its nuclear threat as its war in Ukraine drags on, while North Korea continues to advance its nuclear and missile programs. In June, the United States attacked Iranian nuclear sites.
