Japan Govt Panel Proposes Modest Minimum Wage Hike

A Japanese government panel has recommended a 55-yen increase in the minimum hourly wage for fiscal 2026, which would raise the average minimum wage to 1,176 yen per hour. This recommendation comes from the Central Minimum Wages Council, an advisory panel to the labor minister. The proposed hike is lower than last year's record increase of 63 yen, reflecting a slowdown in inflation.

The recommended increase was made considering living costs, wage levels, and companies' abilities to pay. Prefectural councils will determine their respective minimum wage levels based on this central council's recommendation. This process typically takes place every fiscal year.