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Japan Sets 2026 Minimum Wage Average at ¥1,177 After Prefectures Finalize Rates

The decision signals a cooling of last year's interregional bidding, raising questions over small businesses' ability to absorb higher labour costs, with women remaining concentrated in low‑paid jobs.

Overview

  • All 47 prefectural minimum‑wage councils finalized their 2026 hourly rates on Thursday, producing a national weighted average of ¥1,177, a ¥56 increase from the current level.
  • Thirty‑three prefectures set wages above the central July guideline, but overpayments were generally smaller than in the prior two years and fewer top‑ups were recorded.
  • The rise is the second‑largest on record, yet many prefectures staggered effective dates to give firms time to adjust, with Okinawa applying its new ¥1,086 rate from December 2.
  • Business groups and some local governments warned that repeated hikes strain small and medium enterprises, prompting calls for subsidies, simpler grant procedures and steps to improve price pass‑through and productivity.
  • Ministry data show about 67.4% of workers earning less than 1.1 times the regional minimum are women, highlighting that minimum‑wage increases alone are unlikely to erase entrenched gendered low‑wage employment.