Japan hikes FY2026 average minimum wage guideline by 4.9% to 1,176 yen
TOKYO (Kyodo) -- An advisory panel to Japan's labor ministry decided Tuesday to raise the minimum wage guideline for fiscal 2026 by a nationwide average of 55 yen (34 cents), or 4.9 percent, to 1,176 yen per hour, amid rising living costs.
The increase fell short of the previous year's guideline hike of 63 yen, which was the largest since the current system began in fiscal 2002. The margin reflected the need both to alleviate the financial burden on workers hit by inflation and to give consideration to small and midsize firms' business conditions.
Minimum wages are revised every fiscal year. The government panel sets an annual guideline for minimum wages in each of Japan's 47 prefectures. Local panels then decide the specific rates for their respective areas, with the new wages typically taking effect from October onward.
If prefectures raise wages in line with the guideline, the highest minimum wage would be 1,280 yen in Tokyo, while the lowest would be 1,079 yen in Kochi, Miyazaki and Okinawa prefectures.
Citing the impact on daily life of the Middle East conflict and other factors, labor representatives had called for an average increase of 75 yen, exceeding last year's guideline increase. Employer representatives, meanwhile, urged restraint as surging materials prices were also driving up business costs.
In fiscal 2025, the guideline called for a 63 yen hike on average but the local panels ultimately raised it by 66 yen.
Article source: https://mainichi.jp/english/articles/20260729/p2g/00m/0bu/025000c
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