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Japan’s Wage Council Postpones FY2025 Minimum Wage Ruling

The central council will reconvene on August 4 to continue negotiations over a potential 6% increase weighing record gains against business concerns.

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Overview

  • The Central Minimum Wage Council subcommittee deferred its decision on the FY2025 wage guideline after debating a roughly 6% (¥63) boost.
  • A 6% rise would raise the national weighted average to about ¥1,118 per hour and surpass last year’s 5% increase.
  • Employer representatives signalled caution about any increase beyond 6% due to limited price pass-through capacity in small and medium enterprises.
  • The council is scheduled to reconvene on August 4 to finalise its recommendation ahead of prefectural implementation in October.
  • Meeting the government’s target of a ¥1,500 national average in the 2020s would require sustained annual increases of roughly 7.3%.