Japan's Minimum Wage Raised to 1,118 Yen per Hour
Set to Surpass South Korea's Minimum Wage Next Year
Japan's minimum wage has risen to a record high, once again surpassing South Korea's minimum wage.
According to local media such as Nihon Keizai Shimbun (Nikkei) and Asahi Shimbun on August 4, Japan's Ministry of Health, Labour and Welfare's Central Minimum Wage Council decided to raise the nationwide average hourly minimum wage from the current 1,055 yen (approximately 9,912 won) to 1,118 yen (10,504 won), an increase of 63 yen.
Both the amount of the increase and the rate of increase are the highest since the current adjustment system was introduced in 2002.
Japan's minimum wage varies by region. Based on the standards proposed by the Central Minimum Wage Council, each prefectural council (todofuken, or regional governments) adjusts the wage according to local conditions. However, the decisions of the prefectural councils rarely deviate significantly from the standards set by the central council.
Currently, Tokyo has the highest minimum wage at 1,163 yen (about 10,928 won). The lowest is Akita Prefecture at 951 yen (about 8,939 won). If all regional governments raise their minimum wages to at least the amount proposed by the central council, even Akita Prefecture, which currently has the lowest minimum wage, will exceed 1,000 yen. The increased minimum wage will be applied sequentially starting in October.
The amount proposed by the central council is expected to surpass South Korea's minimum hourly wage for next year, which is set at 10,320 won. The rate of increase is also more than double South Korea's 2.9%.
Due to the weak yen and other factors, South Korea's minimum wage has been higher than Japan's since the 2023 final figure set in 2022, but Japan has now regained the lead.
The Japanese government is pursuing a plan to raise the nationwide average minimum wage to 1,500 yen during the 2020s. Nikkei explained that this would require an average annual increase of 7.3%.
The Shin-Okubo street in Tokyo, Japan, where Korean restaurants and shops are concentrated, was bustling with crowds on June 8. Korean signboards and products can be easily seen here. Photo by Yonhap News
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