Japan Minimum Wage Set to Rise 55 Yen in Fiscal Year 2026

Japan's national average minimum wage is set to rise by 55 yen in fiscal year 2026, according to a labor ministry panel. This represents a 4.9% increase from the current rate of 1,121 yen per hour.

The decision was reached after a meeting of a subcommittee under the Ministry of Health, Labor and Welfare's advisory council. The proposed increase was agreed upon despite differing views between labor representatives, who called for a substantial rise due to higher prices linked to Middle East tensions, and employer representatives, who urged caution to avoid financial strain on small and midsize businesses.

The recommended minimum wage increases will vary by prefecture, with Category A areas receiving an increase of 54 yen per hour. This includes Tokyo and Osaka, while Category B and C areas were given a recommended increase of 56 yen per hour each.