Labor-Management Gaps Remain Wide at Japan Minimum Wage Panel

Tokyo, July 27 (Jiji Press)–Discussions on a hike in Japan’s minimum wages for fiscal 2026 entered the final stage at a labor ministry panel Monday, but gaps between the labor and management sides remain wide. Members from the labor side at the Central Minimum Wages Council have demanded that the nationwide average hourly wage be raised by 75 yen from the current 1,121 yen. The size of the requested hike is larger than a record increase of 63 yen logged for fiscal 2025. Behind the demand are rising prices as well as robust pay hikes agreed on in this year’s “shunto” spring labor-management negotiations. Those representing the management side see the need to raise the minimum wages but at the same time are calling for careful discussions as business conditions for smaller companies have deteriorated due partly to soaring material procurement costs reflecting the Middle East turmoil. Because higher costs have not yet been fully passed on to customers, whether smaller firms can cover potential hikes in minimum wages should be carefully assessed, they argued. Minimum wages are revised every fiscal year based on living costs, wage levels and companies’ abilities to pay. Relevant prefectural councils determine their respective minimum wage levels after the central government council comes up with its recommendation. END [Copyright The Jiji Press, Ltd.]