Japan hikes FY2026 average minimum wage guideline by 4.9% to 1,176 yen

TOKYO - An advisory panel to Japan's labor ministry decided Tuesday to raise the minimum wage guideline for fiscal 2026 by a nationwide average of 55 yen (34 cents), or 4.9 percent, to 1,176 yen per hour, amid rising living costs.

The increase fell short of the previous year's guideline hike of 63 yen, which was the largest since the current system began in fiscal 2002. The margin reflected the need both to alleviate the financial burden on workers hit by inflation and to give consideration to small and midsize firms' business conditions.