By JUMPEI MIURA/ Staff Writer
July 28, 2023 at 18:33 JST
The Ministry of Health, Labor and Welfare in Tokyo's Kasumigaseki district (Asahi Shimbun file photo)
Workers earning the minimum wage will get a record raise after an advisory panel to the labor ministry on July 28 agreed to hike hourly pay by up to 41 yen, or an inflation-beating 4.3 percent.
The change will take the average minimum wage to 1,002 yen ($7.20), exceeding the government goal of 1,000 yen.
The decision was made by the Central Minimum Wages Council’s ministry subcommittee, a body of labor, management and academia representatives.
The subcommittee establishes minimum wage guidelines for three groups of prefectures, grouped A to C, depending on their economic situations.
This year, the subcommittee members recommended rises of between 39 and 41 yen for the three groups.
Each prefectural government will decide the minimum wage raise for their prefectures based on the guidelines.
The new minimum wages will then roll out in the autumn.
Currently, Tokyo has the highest minimum wage at 1,072 yen, while the lowest minimum wage of 853 yen is in place in 10 prefectures in Tohoku, Kyushu and Shikoku.
The increase comes amid surging consumer prices brought about by higher food import costs and pricier fuel due to Russia’s invasion of Ukraine.
The minimum wage has risen by around 3 percent annually in recent years, although there was no increase in 2020, when the COVID-19 pandemic was under way.
Last year’s hike of 3.3 percent was itself a record increase.
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