Japan Sees Record Wage Increases Across Sectors

A Japanese government panel has recommended a record 6% increase in the national average minimum hourly wage to ¥1,118, the largest jump since the current system began and expected to raise minimum pay above ¥1,000 in all prefectures. This is part of broader wage hikes, with major companies raising average monthly salaries by over 5% for the second consecutive year. Civil servants are also set for their largest pay increase in 34 years, reinforcing a positive wage-price cycle targeted by the Bank of Japan. These wage increases across both public and private sectors are seen as crucial for sustaining wage-driven economic growth and may influence future Bank of Japan policy. Concerns remain that higher labor costs could strain small businesses, which employ most of the workforce. The government aims to further raise the minimum wage to ¥1,500 by decade’s end.