Set the stage for enabling continual increases in minimum hourly wage

Jul 28, 2017 | News On Japan

Jul 28, 2017 (the-japan-news.com) - Raising wage levels will ensure that the economy breaks free from deflation and working conditions for non-regular workers improve. To accomplish these goals, we want the government to swiftly create an environment in which increases in the minimum wage can be steadily continued.

The Health, Labor and Welfare Ministry's Central Minimum Wages Council has agreed on a proposed target for a raise in mandatory minimum hourly wages for fiscal 2017. The nation's average minimum hourly wage will be raised by Â¥25 to Â¥848. This eclipses the Â¥24 increase adopted in the previous fiscal year, and is the largest increase since fiscal 2002, when the minimum wage began to be measured by an hourly rate.

The rate of increase is 3 percent, reaching the government's target of "around 3 percent annually" for the second consecutive year.

The minimum wage applies to all workers, and paying wages less than this amount is illegal. With this yardstick as a reference, minimum wage councils in each prefecture will determine their respective increase in the minimum wage based on regional conditions. This must be definitely implemented.

The nation is facing an increasingly severe labor shortage as the economy continues its moderate recovery. The wages of non-regular workers are trending upward. In urban areas, job offers noticeably list wages well above the minimum rate.

The management side's acceptance of increases of more than Â¥20 for two straight years is a sign of their sense of crisis regarding the difficulty in hiring employees.

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