Japan Minimum Wage:

 https://mainichi.jp/english/articles/20210712/p2a/00m/0op/010000c

Article: 

Discussion in a labor ministry panel on raising the minimum wage in Japan is approaching its final stages. The move would mark the second time since the outbreak of the coronavirus in 2020 for the minimum wage to be revised.

From fiscal 2016, the minimum wage had been raised by at least 3% for four consecutive years. But due to the effects of the coronavirus last year, the national average was raised by just 1 yen to reach a weighted average of 902 yen (about $8.19) per hour.

The role of a minimum wage is to guarantee an income under which people can live. But at 900 yen an hour, even if a person works a full 40 hours a week, the amount they earn in a year would be under 2 million yen (about $18,160).

Ideas:

The minimum wage is supposed to help low income workers have somewhat of a livable wage. But unfortunately, in some cases, it doesn't have that affect.

In some cases or many cases the person earing the minimum wage doesn't work enough hours to help the live.

Sometimes, it because they are only part-time workers and the company won't give them more hours and or they can't work more hours.

Sometimes there are company budget restraints, in that a company just can't afford to have part-time workers too many hours.

And sometimes a company might actually reduce worker hours because the minimum wage, when it was raised is cutting too much into the companies profit margin, maybe for example at franchise convenience stores that operate already on very thin profit margins.

Article:

By international standards, Japan's minimum wage is low. In Britain, Germany and France, even amid the outbreak of the coronavirus, the minimum wages of those countries have risen by around 1% to 2% a year.

A proper increase in the minimum wage is necessary to ensure that the pay gap between those in regular and nonregular employment does not widen.

In the annual spring labor offensive, in which labor and management in Japan negotiate wages, there has been a trend for wages to increase primarily for regular employees, even under the coronavirus pandemic.

Ideas:

The European countries for many years have made the social welfare of it citizens a priority including a high minimum wage with yearly wages.

Japan is a little behind the game with regards to a livable minimum wage.

In the 70's 80's and most likely 90s' the income gap globally was not a major challenge and or wasn't thought of a a major problem.

But ever since the 2008 Financial Crisis the income gap among workers and the overall population in countries as received a lot of attention.

Its also estimated that now upwards of 30 percent of all workers in Japan are either contract or part-time, and possibly many of these workers are not only making a minimum wage.

Of course companies want to reduce costs but it can have an affect on the economy.

For example those who don't have a wage that is equal to or similar to regular workers, have less income to spend. With less to spend or disposable income, it can affect the economy, as consumer spending some say it up to 50 percent of Japan's GDP.

Article:

At the same time, many nonregular workers are employed in the restaurant and retailing industries, and for them the effects of an increase in the minimum wage are large. Even during the spread of the coronavirus, workers in these industries have been providing services that are essential for our daily lives. Efforts must be made to provide them with better remuneration.

Disparity between regions is also a problem in Japan. Tokyo has the highest minimum wage in the country, at 1,013 yen (about $9.20) per hour, which is more than 200 yen per hour higher than the minimum wage in some other prefectures, such as Akita. Even when factoring in price differences in those regions, the delay in improvements in regional areas is clear.

Ideas:

Of course the difference in the minimum wage among the regions might be related to overall costs in a region, as Tokyo and Osaka are more expensive to live in than the provincial small areas.

Yes, many of the workers in the hospitality and services industry don't make a lot and they need to be compensate even more. And yes they are on the front lines, meaning they come in contact with people everyday during the pandemic time.

But even without the pandemic most of the workers in services don't make enough.

And again it can have a huge impact, eventually, on the economy, as their extra income, after paying their monthly bills is not enough to go out and use it in the economy. 

So they are a group that is not able to participate fully in the economy compared to full-time workers.

Article:

The government, which last year adopted a stance of prioritizing job retention over increasing wages, has set a goal of increasing the minimum wage to "an average of 1,000 yen at an earlier stage." Managers, however, are asking for the current level be maintained, on the grounds of worsening earnings. Indeed, the restaurant, accommodation and other industries have seen major declines in demand due to the spread of coronavirus infections. If the minimum wage increases, it will inevitably have an impact on their management.

To enable these industries to raise employees' wages, the government should introduce measures to help improve their performance. It is essential to enhance subsidy programs while listening to the voices of people in the field.

Article:

This situation is exactly what is going on in a country next to Japan. The government has raised the minimum wages in steps over the past few years, but many companies are unable to maintain a profit.

What they companies have done, as mentioned above, restaurants, convenience stores, small factory companies have laid off workers and or cut worker hours to maintain some kind of profit margin.

The companies just can't survive with the current minimum wage.

And now the the pandemic and the decreasing demand many of them are not surviving.

But what some of them have done is moving into the automation of some services such as fast food places where they use kiosks for customers to order food instead or having workers for that service. The same is happening at some convenience stores.

Just like what Uniqlo and GU have done in Japan with checkouts locations in the stores. And of course some restaurants have kiosk for customers to order and then get their ticked and wait for their order.

Subsidy programs were also used in the country next to Japan, but it didn't seem to help much.

Article: 

Major companies also have a big role to play. In the manufacturing industry, subcontractors may have to raise the prices of products in some cases to cover wage increases. Consideration should be given to the actual state of affairs.

Precisely because of the downturn caused by the coronavirus crisis, the government must create an environment enabling the minimum wage to be raised. That will help lift Japan's economy.

Ideas:

Yes, even in the country next to Japan many subcontractors or small companies have had to raise product prices as a way to cover costs.

But also, there is another problem called "market power." Many of the big companies dictate to the smaller subcontractor companies what prices they will pay. 

So even if the smaller subcontractor wanted to raise prices to cover its increased salary costs the larger company will reject the prices as they have all the market power, and as such the smaller companies don't make a profit.

Yes, if done correctly an increase in the minimum wage will help the workers. In turn they might have more extra or disposable income which means they can participate more in the economy, spend more, and the economy will grow faster.

Its a major problem in the country next to Japan.

Have a nice day and be safe!