Minimum wage of 1,500 yen to be achieved as early as possible in early 2030s

2026-06-25

Prime Minister Sanae Takaichi says Japan will aim to raise the national average minimum wage to 1,500 yen 'as early as possible in the first half of the 2030s at the latest'. The goal is to create an environment in which wages can be raised sustainably, taking into account the recent rise in prices. She will explain the plan at a Japan Growth Strategy Council meeting to be held soon.

Ishiba administration had set a 2020s target

On the 1,500 yen minimum wage, the Shigeru Ishiba administration had aimed to achieve the target in the 2020s. The 2025 basic policy on economic and fiscal management and reform explicitly said, 'We will continue steady efforts toward achieving the ambitious target of a national average of 1,500 yen in the 2020s.' This has pushed back the final deadline for the goal.

Backing pay increases at smaller firms through public procurement

The Takaichi administration says it will not leave wage increases entirely to businesses, but will build an environment that allows pay to keep rising. It plans to thoroughly ensure price pass-through in public procurement to support wage hikes at small and midsize companies.

Productivity gains could lift it to 1,513 yen in fiscal 2033

The government estimated that if labour productivity continues to improve, the minimum wage would reach 1,513 yen in fiscal 2033. The calculation assumes growth of 3.82%, the average for fiscal 2023 and fiscal 2024, will continue.

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