Minimum wage in Japan
Japan's minimum wage depends on the region and industry. Industrial minimum wages apply for certain industries and are usually set higher than the regional minimum. If regional and industrial minimum wages differ, the higher of the two applies. The current minimum wage (national weighted average) increased to 961 yen (¥) (6.49 U.S. dollars ($)) for the 2023 fiscal year starting on 1 April 2023. This increase came among heightened inflation and the commitment of the Prime Minister of Japan, Fumio Kishida to higher wages. It was reported in late July 2023, that the average minimum wage in Japan was expected to be increased to 1,002 yen an hour (6.76 U.S. dollars). The new average national minimum wage was expected to take effect around October 2023.
| 最低賃金法 (Minimum Wage Act) | |
|---|---|
| Territorial extent | Japan, minimum wage varies by prefecture |
| Passed | February 19, 1959 |
| Effective | On August 12, 1959, the first minimum wage based on the Minimum Wage Act was implemented in Shizuoka Prefecture. |
| Legislative history | |
| Introduced | April 15, 1959 |
| Status: Amended | |
As of early October 2023, the lowest minimum wage in Japan exists in the Iwate Prefecture at ¥893 an hour (6.03 U.S. dollars), while the highest minimum wage is in Tokyo at ¥1,113 an hour (7.51 U.S. dollars).
The cost of commuting, extra pay (such as working on holidays, at night, overtime, etc.) and temporary pays (bonus, tips, etc.) must be paid exclusively and cannot be used to calculate towards the minimum wage. Regional minimum hourly wages are set by the Minister of Labour or the Chief of the Prefectural Labour Standards Office. Recommendations are made by the Minimum Wage Council.