Japan's Central Minimum Wages Council Recommends 55-Yen Hike for Fiscal Year 2026

A Japanese government panel has proposed a minimum wage hike for fiscal year 2026. The Central Minimum Wages Council, which advises the labor minister, recommended an increase of 55 yen, or 4.9%, on average in the minimum hourly wage in Japan.

The recommended hike is lower than the previous record increase of 63 yen for fiscal 2025, reflecting a slowdown in inflation from the same period last year. Although prices have continued to rise, the council took into account the changing economic landscape and companies' abilities to pay.

Minimum wages are revised every fiscal year based on living costs, wage levels, and companies' financial situations. Prefectural councils will determine their respective minimum wage levels based on this recommendation.