Key Facts
• In 2025, Japan’s minimum wage will increase by a record 63 yen.
• The national average hourly wage will rise to 1,118 yen.
• All prefectures will exceed 1,000 yen per hour if the increase is implemented.
• The decision considers rising living costs and ongoing wage increases in small businesses.
• This is the first revision since the government set a 1,500 yen target for the 2020s.
• Specific increases for each prefecture will be decided, effective from October 2025.
• Labor and business representatives debated for seven sessions, the longest in 44 years.
Summary
Japan’s Ministry of Health, Labor, and Welfare has set a record 63 yen increase in the minimum wage for 2025, raising the national average hourly wage to 1,118 yen. This marks the first adjustment since the government announced its goal of achieving a 1,500 yen average in the 2020s. The increase reflects rising living costs and sustained wage growth in small businesses. If implemented, all prefectures will surpass 1,000 yen per hour. The decision follows prolonged negotiations, with labor groups advocating for significant raises and businesses showing caution. Finalized prefectural rates will take effect in October 2025.
