The advisory council at Japan's Ministry of Health, Labour, and Welfare has passed guidelines for increasing the national average minimum hourly pay. As approved, these guidelines push the rate above 1,000 yen ($7.08) for the first time in the country's history. The panel seeks to raise the rate by 41 yen, which translates to a 4.3% increase for the current fiscal year. This is the most significant increase since the government adopted hourly pay as a benchmark in 2002.
There are a total of 47 prefectures in Japan. The guidelines only exceed ¥1,000 in eight prefectures (Aichi, Chiba, Hyōgo, Kanagawa, Kyoto, Osaka, Saitama, and Tokyo), while it is more than ¥950 in some nearby prefectures. Based on the guidelines, the council will decide the actual amount of the increase for each prefecture, with the new minimum wages coming into effect around October 2023. Each of the 47 prefecture councils will release the minimum wage for their jurisdiction.
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Nathan North is Director of Strategic Initiatives for PayrollOrg.