Japan Panel Defers Decision on Minimum Wages

Tokyo, July 27 (Jiji Press)--A Japanese labor ministry panel failed to reach a conclusion Monday on a hike in the country's minimum wages for fiscal 2026.

The Central Minimum Wages Council, which advises the labor minister, will hold another round of meetings Tuesday.

At the previous meeting Thursday, labor-side members of the council demanded that the nationwide average hourly wage be raised by 75 yen from the current 1,121 yen. The size of the requested hike is larger than a record increase of 63 yen logged for fiscal 2025.

Behind the demand are rising prices as well as robust pay hikes agreed on in this year's "shunto" spring labor-management negotiations.

Those representing the management side see the need to raise the minimum wages but at the same time are calling for careful discussions as business conditions for smaller companies have deteriorated due partly to soaring material procurement costs reflecting the Middle East turmoil.

[Copyright The Jiji Press, Ltd.]