Japanese gov't panel proposes record rise in minimum hourly wage to US$8.4

A panel of the Japanese government on Wednesday proposed a plan to raise the average minimum hourly wage by a record of JPY28 (US$0.25) to JPY930 (US$8.4) in fiscal 2021, local media reported.

The labor ministry's advisory panel proposed the 3.1-percent increase of the minimum wage in its guidelines.
The labor ministry's advisory panel proposed the 3.1-percent increase of the minimum wage in its guidelines.

The labor ministry's advisory panel proposed the 3.1-percent increase of the minimum wage in its guidelines.

If the proposal is realized, it will log the biggest increase since fiscal 2002, and will likely strike a further blow to businesses that are already struggling amid the COVID-19 pandemic, according to local media reports.

The proposed jump came as Japanese Prime Minister Suga Yoshihide pledged to achieve an average hourly rate of at least JPY1,000 (US$9.03) "as soon as possible" to make sure part-time workers can earn more, and narrow the wage disparity between non-regular workers and regular employees.

The hike by JPY28 will surpass the previous record increase of JPY27 in fiscal 2019, according to the ministry.

However, the gap of minimum wage between urban and rural areas remains large, even though Suga seeks to stimulate regional revitalization.

Under the new plan, the minimum wage in Tokyo would be the highest at JPY1,041 (US$9.40) among the nation's 47 prefectures, while seven prefectures in rural areas would mark the lowest at JPY820 (US$7.40).

The new minimum hourly wages will come into effect around October after local panels in each prefecture finalize the revised versions by August, with consideration on their economic situations.

Xinhua