Japan Minimum Wage Hike Slows Amid Inflation Easing

A Japanese government panel has recommended an increase in the country's minimum wage for fiscal 2026. The Central Minimum Wages Council, which advises Japan's labor minister, proposed a hike of 55 yen, or 4.9%, on average. This would raise the average minimum wage to 1,176 yen per hour from the current 1,121 yen.

The recommended increase is smaller than last year's record rise of 63 yen, reflecting a slowdown in inflation in Japan. Minimum wages are revised every fiscal year based on living costs, wage trends, and companies' abilities to pay. The central council divided the country's 47 prefectures into three groups based on their economic strength and proposed recommended wage increases for each group.