Minimum Wages in Japan Increase Once More
Japan's Minimum Wage Set for Record Increase in FY2025
Japan is set to witness a significant increase in its minimum wage across the country, with the national average hourly minimum wage set to rise by a record ¥63, according to a report submitted by the Central Minimum Wages Council to Minister Fukuoka Takamaro on August 4.
The change, scheduled to take effect around October 2025, marks the fifth consecutive year of record increases and aims to mitigate economic disparities across regions and support workers facing rising living costs nationwide.
The wage increase is structured by categorizing prefectures into three groups according to economic conditions. The six prefectures in Category A, which includes Tokyo and Osaka, and the 28 prefectures in Category B (including Hokkaidō, Hiroshima, and Fukuoka) will see an hourly minimum wage increase of ¥63. The 13 prefectures in Category C (including Akita and Okinawa) will see a slightly higher increase of ¥64.
Regionally, Tokyo will have the highest minimum wage at ¥1,226 per hour, Kanagawa close behind at ¥1,225, both exceeding ¥1,200 for the first time. The lowest wage regions like Akita and others currently below ¥1,000 will surpass the ¥1,000 threshold, ensuring all prefectures have a minimum wage above ¥1,000 for the first time.
The new wages are decided by each prefecture’s labor council based on these central guidelines. This year’s negotiation involved extensive discussions—seven rounds, the most since 1981—reflecting the balancing of pressures from labor demanding higher wages due to inflation and management cautious about business impacts.
If implemented, the national average hourly minimum wage will rise from ¥1,055 to ¥1,118. The new minimum wage will be around ¥1,000 to ¥1,050 in a number of prefectures, mainly in Tōhoku, Kyūshū, and Shikoku.
Prime Minister Ishiba Shigeru has expressed a desire to provide targeted support for employers when minimum wages exceed the government’s target level in fiscal 2025. However, the specific nature or form of the support has not been disclosed.
It is important to note that this will be the largest increase since the method of indicating wages on an hourly basis was adopted in fiscal 2002. The Ministry of Health, Labor, and Welfare has not released data on the minimum wage for fiscal 2025 as of the time of this article. Additionally, no information was provided regarding the government's target level for minimum wage in fiscal 2025 or the minimum wage for fiscal 2024.
The impact of the proposed minimum wage increase on employers, particularly small businesses or specific industries, remains to be seen. The Ministry of Health, Labor, and Welfare has provided data on the minimum wage for fiscal 2024, but no such data is available for fiscal 2025 at this time.
A business owner in Tokyo may need to adjust their finances to accommodate the record increase in the hourly minimum wage, which is set to rise from ¥1,055 to ¥1,118. Meanwhile, a photographer capturing the event of this wage increase might have a new subject in the form of a well-deserved paycheck held by workers from various industries across Japan.
