Japanese Government Panel Suggests Significant 63-Yen Increase in Minimum Wage
Japan's Central Minimum Wages Council has proposed a significant increase in the national minimum wage for fiscal 2025, aiming to help workers cope with rising prices and reduce regional wage disparities.
For fiscal 2025, the council recommended a record nationwide average hourly minimum wage increase of ¥63, raising the average minimum wage from ¥1,055 to ¥1,118 per hour effective around October 2025. This marks the largest single-year increase since hourly minimum wages were introduced in 2002, driven by inflation and labor shortages.
The council divided the 47 prefectures into three categories based on economic conditions:
- Category A (6 prefectures, including Tokyo and Osaka): Recommended increase of ¥63 per hour
- Category B (28 prefectures, including Hokkaido, Hiroshima, Fukuoka): Recommended increase of ¥63 per hour
- Category C (13 prefectures, including Akita and Okinawa): Recommended increase of ¥64 per hour (highest increase this year to address economic disparities and severe labor shortages)
Following this, the expected minimum hourly wages in key prefectures are:
| Prefecture Category | Example Prefectures | Expected Minimum Hourly Wage (Fiscal 2025) | |---------------------|------------------------------|--------------------------------------------| | Category A | Tokyo, Kanagawa, Osaka | Tokyo: ¥1,226; Kanagawa: ¥1,225 | | Category B | Hokkaido, Hiroshima, Fukuoka | Over ¥1,100 | | Category C | Akita, Okinawa | Raise of ¥64; Akita was previously ¥951, expected to surpass ¥1,000 |
For the first time, all 47 prefectures will have minimum wages exceeding ¥1,000 per hour. Tokyo and Kanagawa are expected to have wages exceeding ¥1,220 for the first time.
The final exact rates will be set by each prefecture’s local minimum wage council based on these guidelines and implemented starting in October 2025. This significant wage hike aims to help workers cope with rising prices and to reduce regional wage disparities.
In light of the council's recommendations, the anticipated minimum hourly wages in the business sectors of key prefectures will see substantial increases. For instance, Tokyo and Kanagawa, falling under Category A, are expected to surpass ¥1,220 per hour, significantly impacting the finance industry within these areas. This rise in minimum wage is primarily intended to assist workers in managing escalating prices and minimizing regional wage disparities.
