Japan Draft Policy Drops Firm Deadline for ¥1,500 Minimum Wage Target

A draft of Japan's Basic Policy on Economic and Fiscal Management and Reform signals that the national average minimum wage target of ¥1,500 ($9.25) per hour may be reached in the next decade rather than by the end of the current decade, the Japan Times reported on July 2.

The document changes the goal from a firm end-of-decade deadline to a more flexible target. It explicitly raises the possibility that the ¥1,500 level will not be reached until the 2030s.

Prime Minister Sanae Takaichi has signaled that the minimum wage in Japan might rise more slowly than previously expected. The draft policy, which sets the government's economic and fiscal agenda for the coming year, is scheduled for approval later in July. The shift reflects a more pragmatic approach to lifting the lowest wages, according to the reporting.