Minimum wage rises in at least 17 prefectures to exceed central recommendations
Easing competition among prefectures is attributed to the central government effectively postponing its goal of raising the average minimum wage to ¥1,500 this decade.
Japan's minimum hourly wages are set to increase in at least 17 out of the country's 47 prefectures, according to figures released on Wednesday. These wage hikes surpassed the recommendations from the government's advisory panel for fiscal 2026. The increases ranged from ¥1 to ¥4 over the recommended levels, compared to a maximum of ¥18 in the previous year.
The new wage levels are set to come into effect in October. As of the end of the month, the remaining 17 prefectures will determine their revised wages. The Central Minimum Wages Council, which advises the labor minister, categorizes the prefectures into three groups based on economic conditions. The council proposed a ¥54 increase for the top-tier A group and a ¥56 increase for the middle-tier B and bottom-tier C groups in July.
In Miyagi and Tottori prefectures, local councils decided to raise their hourly minimum wages by ¥60, bringing them to ¥1,098 and ¥1,090, respectively, for fiscal 2026. Akita Prefecture's local council proposed a ¥59 increase, which is expected to take effect on October 14. The revision in fiscal 2025 was delayed until the end of March to give companies time to prepare, resulting in a wage hike that exceeded the recommended level by ¥16.
The outflow of young people to the Tokyo metropolitan area is cited as a reason for the wage gap with Tokyo and other cities. The central government has a softer stance on raising wages, postponing the goal of achieving a nationwide average minimum wage of ¥1,500 in the 2020s. The central council also stated that raising wages unrealistically is not appropriate to prevent prefectures from being ranked at the bottom.
Yamanashi Governor Kotaro Nagasaki urged his council to consider increasing the minimum wage, stating it is difficult to maintain living standards with the current rate. While raising the minimum wage is crucial for workers' livelihoods, it may also increase the cost burden on small and midsize companies.
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