Japanese Panel Mulls 30-Yen Increase in Minimum Wages
Tokyo, Aug. 1 (Jiji Press)--A Japanese government advisory panel is considering proposing raising minimum wages by some 30 yen on average in fiscal 2022, the largest increase on record, amid rising inflation, sources familiar with its discussions said Monday.
A subcommittee of the Central Minimum Wages Council, which advises the labor minister, is scheduled to meet later on Monday after it failed to reach an agreement in the past four rounds of talks. It last met on July 25.
Both labor and management representatives on the subcommittee are in agreement on the need to raise minimum wages to cushion the impact of soaring food and energy prices.
But the management side is concerned that companies, mainly smaller firms, cannot afford to raise wages considerably as they struggle to pass on higher costs to clients.
Each prefectures sets its minimum wages, using the subcommittee's proposals as a guide. In fiscal 2021, which ended in March, minimum wages were raised by 28 yen, or 3.1 pct on average, the largest since fiscal 2002.
[Copyright The Jiji Press, Ltd.]