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Minimum wage in Japan

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最低賃金法 (Minimum Wage Act)
Territorial extentJapan, minimum wage varies by prefecture
PassedFebruary 19, 1959
EffectiveOn August 12, 1959, the first minimum wage based on the Minimum Wage Act was implemented in Shizuoka Prefecture.
Legislative history
IntroducedApril 15, 1959
Status: Amended

Japan's minimum wage depends on the region and industry. Industrial minimum wages apply for certain industries and are usually set higher than the regional minimum.[1] If regional and industrial minimum wages differ, the higher of the two applies.[2] The current minimum wage (national weighted average) increased to 961 yen (¥) (6.49 U.S. dollars ($)) for the 2023 fiscal year starting on 1 April 2023. This increase came among heightened inflation and the commitment of the Prime Minister of Japan, Fumio Kishida to higher wages.[3] It was reported in late July 2023, that the average minimum wage in Japan was expected to be increased to 1,002 yen an hour (6.76 U.S. dollars).[4] The new average national minimum wage was expected to take effect around October 2023.[5]

As of early October 2023, the lowest minimum wage in Japan exists in the Iwate Prefecture at ¥893 an hour (6.03 U.S. dollars), while the highest minimum wage is in Tokyo at ¥1,113 an hour (7.51 U.S. dollars).[6]

The cost of commuting, extra pay (such as working on holidays, at night, overtime, etc.) and temporary pays (bonus, tips, etc.) must be paid exclusively and cannot be used to calculate towards the minimum wage. Regional minimum hourly wages are set by the Minister of Labour[7] or the Chief of the Prefectural Labour Standards Office. Recommendations are made by the Minimum Wage Council.[8]

Japan's minimum wage rate over time, Weighted national average[9][10][11]

References

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  1. ^ "地域別・特定(産業別)最低賃金の全国一覧" [Nationwide list of regional and specific (industrial) minimum wages]. 厚生労働省 (Ministry of Health, Labor and Welfare) (in Japanese). Archived from the original on 2017-10-23. Retrieved 2010-11-15.
  2. ^ 2008 Country Reports on Human Rights Practices, United States Department of State.
  3. ^ Kajimoto, Tetsushi; Kihara, Leika (2022-08-02). "Japan's planned record minimum wage hike opens path to sustained GDP growth". Reuters. Retrieved 2022-09-09.
  4. ^ Nagata, Kazuaki (28 July 2023). "Japan's average minimum wage set to top ¥1,000". The Japan Times. Retrieved 20 January 2024.
  5. ^ "Average Minimum Wage in Japan Set to Exceed ¥1,000 for First Time". 15 August 2023. Retrieved 20 January 2024.
  6. ^ "Price Rises Continue: Changes Affecting People's Lives in Japan from October 2023". Nippon.com. 6 October 2023. Retrieved 20 January 2024.
  7. ^ "地域別最低賃金の全国一覧" [National List of regional minimum wage] (in Japanese). Ministry of Health, Labour and Welfare. Archived from the original on 2019-06-11. Retrieved 2015-12-26.
  8. ^ "Realization of Meaningful, Secure Employment for Workers". Ministry of Health, Labour and Welfare of Japan. Archived from the original on 2019-06-11. Retrieved 2006-12-19.
  9. ^ "Minimum Wage System" (PDF). MHLW.
  10. ^ "ひと目でわかる！最低賃金". saichin.net (in Japanese). Retrieved 2022-09-09.
  11. ^ "Consumer price index (2010 = 100) - Japan | Data". data.worldbank.org. Retrieved 2022-09-09.
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