Japan’s Minimum Wage to Exceed ¥1,000 Nationwide for 1st Time; Record Increase of ¥63 Requested by Subcommittee

The Yomiuri Shimbun

14:04 JST, August 5, 2025

A subcommittee of the Central Minimum Wages Council, an advisory body to the health, labor and welfare minister, decided Monday on a guideline for raising the minimum hourly wage in the current fiscal year by a record ¥63, or 6% on average nationwide.

The minimum wage is set separately in each prefecture. Currently, there are 31 prefectures where the minimum wage is below ¥1,000, including Akita Prefecture, which has the lowest minimum wage in the country at ¥951.

If the guideline is adopted by the labor councils in each prefecture as planned, the national average minimum wage will rise from the current ¥1,055 to ¥1,118 and all prefectures will achieve a minimum wage of over ¥1,000 for the first time. The minimum wage would exceed ¥1,220 in Tokyo and Kanagawa.

The subcommittee, composed of representatives from labor and management, as well as experts in fields such as economics representing the public interest, determines the guideline for the increase each year based on factors such as inflation and wage growth. The prefectural councils then discuss the guideline and decide on any revisions.

During the deliberations that began on July 11, labor representatives demanded a national average increase in excess of last year’s record ¥50 (5%), mainly citing rising prices. On the other hand, employers sought a more restrained increase. The gap between the two sides was significant, leading to seven rounds of negotiations, the most since 1981. Finally, the members representing public interest presented a guideline, taking into account opinions of both parties, and the two sides reached an agreement.

The guideline was divided into three tiers — A (Tokyo and five other prefectures), B (Kyoto and 27 other prefectures) and C (Akita and 12 other prefectures) — based on factors such as the cost of living. The guideline amounts are ¥63 for A and B and ¥64 for C. This is the first time the guideline amount for the lower tier to exceed that of the higher tier, in an effort to address regional disparities.

The new minimum wages will be implemented in stages starting in October.