Japan Raises Minimum Wage Guideline to 1,176 Yen Per Hour

Japan's labor ministry has raised the minimum wage guideline for fiscal 2026 by an average of 55 yen (34 cents), or 4.9 percent, to 1,176 yen per hour.

The advisory panel made this decision on Tuesday amid rising living costs in Japan.

The increase falls short of last year's guideline hike of 63 yen, which was the largest since the current system began in fiscal 2002. The margin reflects a balance between alleviating financial burdens on workers hit by inflation and giving consideration to small and midsize firms' business conditions.