HOKKAIDO - Hokkaido's minimum wage is expected to rise by 56 yen to a record 1,131 yen per hour in October, entering the 1,100-yen range for the first time, but workers and business owners are concerned that tax and social insurance thresholds could lead employees to limit their hours.
The prefecture's regional minimum wage, which serves as a benchmark for workers' pay, is now almost certain to receive the 56-yen increase.
Hokkaido's minimum wage stood at 126 yen per hour in 1972 and was gradually raised over the following decades. It reached 542 yen in 1992, about half the level planned for 2026, and exceeded 1,000 yen for the first time in 2024.
The new hourly rate of 1,131 yen is scheduled to take effect in October 2026.
At a supermarket in Sapporo's Kita Ward, workers welcomed the prospect of higher hourly pay, although some questioned whether the increase would directly translate into greater take-home income.
"I am happy that the hourly wage is going up, but because I work within the income limit for dependency under my husband's coverage, I will have to decide whether to work much more or ask the company to adjust my hours so that I do not lose that status," a part-time employee said.
The employee said she was concerned that working too many hours could require her to pay income tax and social insurance premiums.
Business owners are also worried not only about higher personnel costs but about the possibility of growing staff shortages as employees restrict their working hours.
"Many employees want to work without exceeding the income limit for dependent status," said Satoshi Yamakawa, president of Maruko Store. "When that happens, even if we ask them to work additional shifts, they will say they cannot work any more."
Yamakawa said the greater challenge for the supermarket may be maintaining daily staffing levels rather than absorbing the wage increase itself.
"Putting together daily shifts and dealing with unavoidable labor shortages will be more difficult for the store than the rise in wages," he said.
Japan sets minimum wages separately in each of its 47 prefectures rather than applying a single nationwide rate. The regional minimum wage generally covers all workers employed in the prefecture, including full-time, part-time and temporary staff, regardless of occupation. Some industries are also subject to separate minimum wage rules, with employers required to pay whichever rate is higher.
Source: 北海道ニュースUHB
