Japan Govt Starts Debates on FY 2026 Minimum Wages

Tokyo, June 27 (Jiji Press)–A Japanese government council started discussions at a meeting Friday on compiling its proposal on the size of hike in minimum wages for fiscal 2026. In this year’s “shunto” labor-management negotiations, the wage hike rate has topped 5 pct for the third straight year. As the pace of growth in prices in the nation is slowing, however, attention has been paid to whether a hefty increase in minimum wages will be secured following a record hike posted in the previous year. The Central Minimum Wages Council, which advises the labor minister, is expected to submit its proposal within July after holding debates based on wage levels, prices and companies’ abilities to pay. Minimum wages are set by each of the country’s 47 prefectures. Specifically, related councils of the prefectures decide revisions in minimum wages based on the proposal from the central government council. As of June 1, the wage hike rate in the 2026 shunto stood at 5.02 pct, compared with 5.26 pct a year before, according to the Japanese Trade Union Confederation, or Rengo. Meanwhile, the country’s consumer price index excluding imputed rents in May rose 1.7 pct year on year, slower than the year-before growth of 4.0 pct, data from the internal affairs ministry showed. At Friday’s meeting of the Central Minimum Wages Council, labor minister Kenichiro Ueno said, “Creating an environment enabling continued wage hikes is the government’s role.” “It is important to raise minimum wages to help the pay hike momentum spread to regional and small companies as well as for nonregular workers,” he added. Meanwhile, a council member representing the management side said, “We need to carefully examine the impacts of the Middle East crisis,” calling for the use of surveys on the effects of the turmoil on corporate management as reference data. A member from the labor side said big data on wages should be used in the discussions. In fiscal 2025, the average minimum hourly wage among the 47 prefectures came to 1,121 yen, up a record 66 yen from the preceding year. The growth topped the council’s recommendation of 63 yen. Minimum wages exceeded 1,000 yen in all prefectures for the first time. END [Copyright The Jiji Press, Ltd.]