Japan’s Local Governments Set Average Minimum Wage at 1,177 Yen, Above Government Recommendation

Japan’s 47 prefectures have settled on an average new minimum wage of 1,177 yen per hour, one yen higher than the benchmark proposed by the central government’s wage council. The new rates will take effect between next month and Dec. 2, depending on the region.

The average represents a 56-yen increase from last year, or 5%. That is smaller than last year’s record 66-yen rise, but it exceeds the 55-yen increase initially proposed by the government. Japan’s system allows each prefecture to make the final decision after a local council reviews the central recommendation.

The central council divides the 47 prefectures into three groups and sets different reference increases. Tokyo, Chiba and Osaka were placed in Group A, with a 54-yen reference increase. Hokkaido, Fukushima, Nagano and Hiroshima were among the Group B prefectures, while Aomori, Okinawa and Kumamoto were in Group C. Both B and C received a 56-yen reference figure.

Tokyo will have the highest minimum wage at 1,280 yen, followed by Kanagawa at 1,279 yen and Osaka at 1,231 yen. Miyazaki will remain at the bottom with 1,085 yen, nearly 200 yen below Tokyo. Okinawa and Kochi each set their rates at 1,086 yen. Saga approved a 65-yen increase, nine yen above the government’s reference figure, while no prefecture set a rate below its benchmark.

The regional gap has fueled annual competition among prefectures to avoid ranking last. With labor shortages especially severe in rural areas, prefectures fear losing young workers to nearby areas offering higher wages. The Nikkei said prefectures see minimum-wage increases as necessary to prevent labor outflows and worsening shortages. The outcome also makes the labor movement’s goal of a 1,500-yen national average before 2030 increasingly difficult. Former Prime Minister Shigeru Ishiba had promoted that target, while the government led by Sanae Takaichi now aims to reach 1,500 yen as early as possible in the first half of the 2030s.