Japan Panel Agrees on Record 50-Yen Hike in Minimum Wages

Tokyo, July 24 (Jiji Press)--A Japanese government panel Wednesday agreed to propose a record increase of 50 yen in the minimum hourly wages for fiscal 2024 after prices in the country rose to historic levels. 
 

A subcommittee of the Central Minimum Wages Council, which advises the labor minister, supports the idea of raising the national average to 1,054 yen per hour, up 5.0 pct from the current 1,004 yen.
 

If the average is raised in line with the proposal, the size of increase will be the largest ever.
 

Based on the proposal, the minimum hourly wages are expected to reach or exceed 1,000 yen in eight more of Japan's 47 prefectures, including Hokkaido and Shizuoka. The number of prefectures with minimum wages at or above 1,000 yen would thus increase to 16.
 

According to a survey by the Japanese Trade Union Confederation, or Rengo, wage increases achieved in this year's "shunto" spring labor-management talks averaged 5.1 pct.
 

While subcommittee members representing the labor side called for minimum wage hikes larger than last year, members from the management side were cautious in consideration of small companies that cannot raise wages substantially.
 

Japanese minimum wages are revised every year. Prefectural wage boards set minimum hourly wages around August based on a proposal from the council. New minimum wages enter into force in October or later.
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