Minimum Wage Increase Slows Under Takaichi Government
While Japan’s average minimum wage is set to increase by ¥55 per hour, this is a smaller increase than last summer’s ¥63.
On July 28, Japan's Central Minimum Wages Council advised raising the hourly minimum wage by ¥55 in fiscal 2026. While labor representatives desired a ¥75 increase, corporate management representatives expressed concern over the impact on small and medium-sized businesses, citing regional instability. The council's recommendation was lower than the ¥63 rise seen in fiscal 2025 due to slowing inflation.
If implemented, the wage increase would raise the national average hourly minimum wage from ¥1,121 to ¥1,176. The guidelines categorize prefectures into three groups based on economic conditions, with increases ranging from ¥54 in Category A (including Tokyo and Osaka) to ¥56 in Category B (Hokkaidō, Hiroshima, and Fukuoka) and Category C (Akita and Okinawa).
The council in each prefecture determines the specific wage increase amounts, set to take effect around October 2026. Cities like Tokyo, Kanagawa, and Osaka will see increases over ¥1,200, while many prefectures will see increases under ¥1,100, especially in Tōhoku, Kyūshū, and Shikoku. The previous administration aimed for a ¥1,500 national average minimum wage by the end of the 2020s, but under Takaichi Sanae's leadership, this target has been postponed to the early 2030s.
Written by urgent.news from Nippon.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
