Japan Press Weekly

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2020 August 19 - 25 [LABOR]

Average hourly minimum wage to be 902 yen in 2020, up only 1 yen

The national average of minimum wages is expected to be 902 yen per hour this year, up only one yen from the current 901 yen. This is a weighted average of recommendations made by regional minimum wage councils in all prefectures.

The expected year-on-year increase is at the lowest level in 16 years.

In this year’s minimum wage talks, Prime Minister Abe Shinzo insisted on the need to freeze the minimum wage in line with the business circle’s demand, by citing the ongoing coronavirus pandemic. As a result, the Labor Ministry’s Central Minimum Wage Council last month issued a recommendation that minimum wages nationwide be maintained at the current level.

Local bodies of the National Confederation of Trade Unions (Zenroren) argued for a higher minimum wage in meetings of regional minimum wage councils. Consequently, nine prefectures recommended a three-yen hike, 14 prefectures a two-yen increase, and 17 prefectures one yen.

Under the new minimum wage table, Tokyo will have the highest hourly wage of 1,013 yen while seven prefectures including Okinawa will have the lowest at 792 yen. The regional disparity will decrease to 221 yen from the ongoing 223 yen, but it still is tantamount to a gap of 460,000 yen in annual income for full-time workers.

Past related articles:
> Labor Ministry’s panel gives in to business circles’ pressure not to raise minimum wages [July 23, 2020]
> 110K signatures submitted for minimum wage hike and for demand to protect workers’ livelihoods from corona recession [June 5, 2020]