How will our daily lives in Japan be affected by price hikes, min. wage updates from Oct.?
TOKYO -- Starting in October, various systems and mechanisms relating to our daily lives in Japan will change. The medical co-payment for elderly outpatients will be raised for some individuals aged 75 and over, while food prices will continue to rise, with 500-milliliter beverages set to see their price tags reach 200 yen (approx. $1.35) or above each. Meanwhile, minimum wages will be revised by each prefecture in sequence, with the national weighted average rising by 66 yen to 1,121 yen (about $7.58) per hour. Here are the details of key changes.
Elderly co-payment will rise while relief measure will end
The co-payment hike will affect 75-plus-year-old single-person households with an annual income of 2 million yen (approx. $13,500) or more, as well as households of two or more members with a yearly income of 3.2 million yen (about $21,600) or above. This demographic's co-payment had already been raised from 10% to 20% in October 2022, but that was ameliorated by a monthly outlay cap of 3,000 yen (around $20.28). This measure will be terminated, bringing the co-payment to the full 20% in principle.
Price hikes for food and beverages
Companies including Kirin Beverage Co., Asahi Soft Drinks Co., Suntory Beverage & Food Ltd., Coca-Cola Bottlers Japan Inc. and Ito En Ltd. will raise their suggested retail prices for drinks in plastic bottles and bottle-shaped cans from October.
A range of 500-milliliter drinks like "Mitsuya Cider" and "Coca-Cola" will cost 200 yen or more when purchased from vending machines. Additionally, Takanofoods Co.'s "Okame Natto" fermented soybeans and Sato Foods Co.'s "Sato no Gohan" cooked rice series will also see price increases. According to Teikoku Databank Ltd., the prices of more than 3,000 food items are expected to rise in October, marking the largest barrage of such hikes since April.
Mandating 'flexible work styles'
Companies will be required to establish systems for "flexible work styles" such as teleworking and shorter working hours to support employees with children. Employees with preschool children aged 3 and up must be allowed to choose from these options. Employers will also be required to confirm workers' preferences regarding their hours and job locations during their or their spouses' pregnancy and child birth.
Raising minimum wages
Each of Japan's 47 prefectures will raise their minimum wages one after another. The national weighted average will rise by 66 yen to 1,121 yen per hour, surpassing the 1,000-yen (approx. $6.76) mark across all prefectures.
Tokyo will top the list of prefectures with high minimum wages at 1,226 yen (approx. $8.29), while Kochi, Miyazaki and Okinawa prefectures will share the bottom spot at 1,023 yen (about $6.92). Tochigi Prefecture will raise its minimum wage first, on Oct. 1, while Akita Prefecture's will take effect last, on March 31, 2026.
Auto insurance rates will also see hikes
Tokio Marine & Nichido Fire Insurance Co. will raise its auto insurance premiums by an average of around 8.5%. This comes in response to soaring repair costs due to high prices and increased insurance payouts stemming from natural disasters, marking the second hike of its kind since January.
Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. also plan to raise their car insurance premiums by an average of between 6% and 7.5% in January 2026.
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