Key Facts
• Minimum wage raised by 6.0%, from ¥1,055 to ¥1,118 for FY2025.
• Increase of ¥63 surpasses last year’s ¥50 rise, marking a record high.
• All prefectures expected to exceed the ¥1,000 threshold for the first time.
• Discussions extended to 7 rounds, the first time in 44 years.
• Workers benefit amid rising prices; disparity among workers reduced.
• Government aims to achieve ¥1,500 by the 2020s, advancing the original 2030s goal.
• Annual 7%+ increases needed to meet the ¥1,500 target.
• Over 70% of small businesses find the ¥1,500 goal “impossible” or “difficult.”
• Japan Chamber of Commerce warns rapid hikes may lead to bankruptcies and job losses.
• Local councils to finalize prefectural minimum wages based on national guidelines.
• Tokyo’s current highest wage is ¥1,163; Akita’s lowest is ¥951.
• Government urged to support small businesses with cost transfers and productivity improvements.
Summary
Japan’s minimum wage will rise by 6.0% to ¥1,118 in FY2025, the largest increase to date. This marks the fifth consecutive year of record growth, with all prefectures expected to surpass ¥1,000. The decision followed seven rounds of deliberations, the longest in 44 years, as labor representatives pushed for higher wages amid inflation, while businesses expressed concerns over financial strain. The government has advanced its ¥1,500 minimum wage target to the 2020s, requiring annual increases of over 7%. However, over 70% of small businesses report difficulty meeting this goal, citing risks of closures and job losses. To mitigate these challenges, the government is urged to support small businesses by enabling cost transfers and improving productivity. Local councils will now determine regional minimum wages, with Tokyo currently at ¥1,163 and Akita at ¥951. The wage hike aims to reduce worker disparities and stimulate regional economies.
