Gov't Approves Record Minimum Wage Hike For Japanese Workers

A government panel on Monday, August 1, 2022, agreed on a record hike of 31 yen in the average minimum wage for fiscal 2022 to 961 yen ($7.28) an hour, ending prolonged consultations as Japan battles accelerating inflation amid Russia's war in Ukraine, Mainichi Japan reported.

Photo Insert: Employers who do not pay the minimum amount required by law will be fined.

The figure marks a 3.3 percent increase from the 930 yen in fiscal 2021, keeping the momentum intact for raising the minimum wage for all workers, including part-timers and contract workers.

Labor and management representatives on the panel were on the same page over the need for higher pay, but haggled over how much the rise in inflation should be taken into account. It is rare for consultations by the panel to drag on until August.

The labor side called for a big increase in minimum pay as the cost of living has been rising while the management side, which is struggling with surging costs, has stressed the need for careful consideration.

The subcommittee of the labor ministry's Central Minimum Wages Council met Monday after it failed to reach an agreement in late July, Kyodo News also reported.

Last year, the council proposed the minimum wage for all workers, including part-timers and contract workers, be raised by a record 28 yen to 930 yen. Japan has seen wages grow but the pace of increase is seen as tepid.

Meanwhile, Russia's war in Ukraine since late February has sent energy, raw material and food prices rising globally and core consumer inflation in Japan has topped 2 percent in recent months, pressuring households.

Based on a national target set by the council, local panels will decide on their minimum wage amounts, which will then be adopted around October.

Employers who do not pay the minimum amount required by law will be fined.

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