Minimum wage to top ¥700 nationwide in sharpest rise since 2002, labor ministry says

August 25, 201610:28 am1327 views

Japan’s minimum wage will rise ¥25 on year to ¥823 on average in fiscal 2016, according to the Health, Labor and Welfare Ministry.

This will mark the sharpest growth in the minimum wage since Japan began evaluating it by the hour instead of as a daily wage in fiscal 2002.

The new wage, announced Tuesday, will take effect on Oct. 1 or later in all 47 prefectures.

In late July, the Central Minimum Wages Council, which advises the labor minister, recommended that Japan’s average minimum hourly wage be raised by ¥24 to ¥822. Based on the recommendation, local wage councils adjusted their minimum wages.

The ¥25 hike represents a weighted average that reflects the number of workers. It is higher than the government panel’s recommendation because the number of workers in metropolitan areas, where wages are higher, rose from the level when the recommendation was made.

Tokyo now has the highest minimum wage at ¥932, up ¥25, while Miyazaki and Okinawa have the lowest at ¥714, up ¥21 each.

A ¥25 hike was also seen in Kanagawa, Chiba, Saitama, Aichi, Osaka and Hyogo prefectures. The minimum wage now tops ¥700 in all prefectures.


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