Labor seeks 75 yen minimum wage hike, narrower regional gap

2026-07-27

Labor and management clash over size of increase

The Health, Labour and Welfare Ministry's Central Minimum Wages Council held the fifth meeting of a subcommittee on July 27 to set a guideline for the minimum wage. Labor representatives called for a 75 yen increase from the nationwide weighted average of 1,121 yen and for the regional gap, which exceeds 200 yen, to be narrowed.

In addition to public members made up of academics, the meeting was attended by labor representatives including Rengo and management representatives including Keidanren. Labor and management are not divided over the policy of raising the minimum wage itself, but the gap over the size of the increase is wide. Talks over the guideline amount have continued as a contest around the high 1,100 yen range on the national average.

Basis for the 75 yen demand

The 75 yen increase sought by labor exceeds the record 66 yen set in fiscal 2025. The demand was based on the final tally of the 2026 spring labor-management wage negotiations released by Rengo on the 3rd, which showed that hourly pay for workers on fixed-term, part-time and contract terms rose by 75.01 yen.

As for regional disparities, the gap in fiscal 2025 was 203 yen between Tokyo's 1,226 yen and Kochi, Miyazaki and Okinawa. The gap has exceeded 200 yen for 13 consecutive years, and labor argues that the guideline increase for lower-wage prefectures should be larger than that for higher-wage prefectures so the difference can be kept below 200 yen.

Concerns over the burden on small firms

The national council classifies prefectures into A, B and C according to economic conditions and presents a reference for the size of the increase. Each prefectural council then decides the final revised rate.

In fiscal 2025, the A rank for six prefectures including Tokyo and Osaka and the B rank for 28 prefectures including Hokkaido and Fukuoka were set at 63 yen, while the C rank for 13 prefectures including Aomori and Okinawa was 64 yen after an extra 1 yen was added. For fiscal 2026 as well, employers have shown some understanding if the guideline for lower ranks exceeds that for higher ranks.

At the same time, employers say the room for wage increases is limited for small and midsize firms that find it difficult to pass on costs. A survey by the ministry covering establishments with fewer than 30 regular employees showed wages in June rose 3.0% from a year earlier. They are reluctant to accept wage hikes far above that level.

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