Japan’s National Average Hourly Minimum Wage Raised to 1,118 Yen

On August 4th, the Ministry of Health, Labor and Welfare’s Central Minimum Wage Council decided to raise the national weighted average minimum wage to 1,118 yen per hour for fiscal 2025. This represents a 63 yen increase from the current 1,055 yen, the largest increase ever.

This represents 23 consecutive years of increases. The proposed 2024 minimum wage is 5.0%, the highest level since the minimum wage began being converted to hourly wages in 2002.

The Japanese government has set a goal of raising the national average hourly minimum wage to 1,500 yen in the 2020s. Upon learning of the decision on August 4th, Prime Minister Shigeru Ishiba stated, “We have carefully considered the target and conducted careful discussions based on the data.” While the annual increase fell short of the 7.3% required to achieve the target, Ishiba stated, “There will be fluctuations from year to year, and we will continue to work hard.”

The specific increase levels are categorized into three tiers: A, B, and C, based on the economic conditions of each prefecture. Six prefectures, including Tokyo and Osaka, are in Tier A, while 28 prefectures, including Hokkaido, Hiroshima, and Fukuoka, are in Tier B. Both tiers will see a 63 yen increase. Thirteen prefectures, including Akita and Okinawa, are in Tier C, with a 64 yen increase. This marks the first time that the increase in lower-tier prefectures has exceeded that in higher-tier prefectures.

If the wage increase is based on the guidelines, the minimum hourly wage in all prefectures will exceed 1,000 yen.

Hiroyuki Fujimura, Chairman of the Japan Labor Policy Research and Training Organization, who chaired the review committee, submitted a formal proposal to Minister of Health, Labor, and Welfare, Sukemaro Fukuoka. Each prefecture will then reconvene its review committee to determine the actual amount of the increase based on the guidelines proposed by the National Review Committee.