10% of Japanese firms to add regular staff after minimum pay hike: survey

Nearly 10 percent of Japanese firms said they will hire more regular workers, over three times as many as those that will slash them, to cope with upcoming sharp hikes across the country in the minimum wage, a recent survey by a credit research company showed.

I like how this 28 yen increase is characterized as a "sharp hike", and emphasize the costliness to firms and their financial instability during the pandemic.

Classic Kyodo. Hard-hitting muckracking reportage as always.

Not only is the US minimum wage inexcusable, but businesses expect you, the customer, to subsidize their employees' wages through tips.

The results came after a Japanese government panel proposed in July raising the average hourly minimum wage in fiscal 2021 by 28 yen to 930 yen ($8.5), the highest since fiscal 2002, when it began using an hourly wage to propose a rough target for hikes.

Because of a tiny increase in the hourly minimum wage, Japan Inc. has decided to hire more full-time workers.

Since then they can have them working unpaid OT off the books with a salary that works out to less than the hourly minimum wage.

Classic late stage capitalism.

Nearly 10 percent of Japanese firms said they will hire more regular workers, over three times as many as those that will slash them, to cope with upcoming sharp hikes across the country in the minimum wage, a recent survey by a credit research company showed.

SHARP hikes? You gotta be kidding, if a raise of 28 yen per hour, on average, is a "sharp hike",??????????????

It's a minor hike, if anything, and the "raise" will be lost to increases in the costs of good and services that have recently been announced.

In fact the people who are getting these "raises" will in actuality, be LOSING money in the long run!

The results came after a Japanese government panel proposed in July raising the average hourly minimum wage in fiscal 2021 by 28 yen to 930 yen ($8.5), the highest since fiscal 2002, when it began using an hourly wage to propose a rough target for hikes.

Japans minimum wage is one of the lowest of developed countries. Perpetual threat of poverty motivates a fear of change. Thus the cycle of voting in a self harming government.

agree 100%

Our cleaning operatives are on the same contact as out senior developers. Neither are rewarded less that 1600 yen per hour, with twice yearly bonus.

If a business cannot afford to pay a living wage they will forever have an unacceptable turnover of staff.

A constant revolving door/cost of training staff only for them to walk to the earliest opportunity.

sharp hikes across the country in the minimum wage, a recent survey

The sharp wage hikes came after the average minimum wage inched up by just 1 yen in fiscal 2020

1 yen is a sharp rise?

Japans minimum wage is one of the lowest of developed countries. Perpetual threat of poverty motivates a fear of change. Thus the cycle of voting in a self harming government.

It is no surprise that 83% say that it won't make any difference. It is such a small rise of 28 Yen (25 cents, US) - despite being the largest in decades. Last year it was 1 yen - the cost of implementing it was probably more than actually paying it. 1 yen an hour wasn't a rise, it was an insult.

The US min wage is an absolute shocker. Running a superpower on third world wages may explain why some parts of America look like Somalia.

We need a maximum wage cap for the total amount that anyone can earn in one year from wages, bonuses and stock options, a healthy maximum ratio for the wage pyramid, and an acceptance of lower profits in return for a minimum wage that respects the amount of their time, workers are devoting to their job.

Life is short for everyone. Taking some of that time in employment deserves a living wage, not the smallest amount you can lobby politicians to set.

I read that if the US minimum wage was in line with productivity gains it would be 24 dollars per hour. In stead worker productivity gains are sucked up by Jeff Bezos and other mega-rich.

Actually with the latest data it would be $26. And people wonder why socialism looks attractive?

https://www.cbsnews.com/news/minimum-wage-26-dollars-economy-productivity/

While the US and other nations are talking of ACTUAL sharp raises in the minimum wage, like $8 to $15, Japan raises it 28 yen, while talks are already in progress to raise consumption tax and cut social welfare benefits, as predicted, immediately after the Olympics ended, and with every year seeing defense budgets triple. So, at the end of an 8-hour shift (not counting the 4 hours or more overtime), a minimum wage earner will have a whopping 224... I guess that would cover the increase in consumption tax on a bottle of green tea, which they'll Jack up to 180 yen as a result of the tax increase, but not much more.

I tip my hat to Germany,which excelles in several things like welfare,human,animal rights and enviroment.

About Japan,we do all hope that it will reach a higher standard hiring and paying well regular workers.

But it might take another generation knowing the speed in changing things here.

Well if I were a young kid, I’d probably be excited to know there was a “sharp hike” in the minimum wage.

Then you find out that “intense debates” have only resulted in a proposal to raise the wage by ¥28.

It’s not even agreed upon, meaning that it will fall further.

And then the author tries to make sense of it all by reminding us that the year before had an increase of ¥1.

I stand corrected and adjusted.

$26 an hour that’s a liveable wage in Japan. ¥980 odd yen an hour that’s just enough too be in debt and have a life focussed on going to work desperate to afford what’s advertised on TV.

I think the real reason they plan to increase the number of regular staff is that they will find it increasingly difficult to find nonregular staff, especially given the relatively low pay rates. There are fewer younger people entering the workforce or attending universities and there are fewer international students or youth on working holiday type visas coming to Japan. Adding to this trend is a move towards people valuing their leisure time more and living frugally as opposed to working more hours. Some just see low pay rates and no benefits as simply not worth it. Those businesses that rely on part time staff as their business model will find it increasing tough going. Expect to see competition push rates higher than the minimum wage over the next few years and some businesses fail.

Japan’s neo-liberal policies are leading to increasingly desperate times for an increasing number of people.

The wage floor increase came as Prime Minister Yoshihide Suga has vowed to achieve an average hourly rate of at least 1,000 yen "as soon as possible" to help nonregular employees earn more and correct wage disparities between them and regular workers.

This is TOTALLY misleading! Regionally speaking here, there is a HUGE gap in the minimum wage! People in Tokyo wouldnt take a job working for 1,000 per hour!

However, many staff in the hospitality industries receive tips which Japanese workers do not

Since when is that raise a “sharp” increase? It seems more like a spit in the bucket. To me, the sharp increase seems more like a sharp poke to sticking it to everyone.

At least they rise their wage before another tax hike

https://www.japantimes.co.jp/news/2019/09/25/business/economy-business/consumption-tax-rate-needs-hiked-15-2025-sustain-social-welfare/

fxgai

A typical result of government intervention.

"The proposal was concluded after intense debate between the management and labor sides,"...

The United States is the lowest. Wow!

¥930 per hour only adds up to ¥1,767,000 pa. ¥28 increase is like having a small pimple. Min wage needs to be ¥1,500 per hour.

Where did you pull this number from? If you are basing it off a 40 hour week, this would only be the gross income, and seeing as how it is over the tax threshold it's in reality MUCH less!

This comes out to roughly (actually less than) 150,000 per month gross. Take away the taxes, and the take home from this "increase" would be more around 120,000 or so per month!

Because you figured this as 40 hours per week, the employee would be full time, and by law the employer would have to supply unemployment insurance and pension insurance as well. To get around that, one would have to cut it down to 36 hours per week or so maximum!

It doesnt even qualify as a "small pimple"

As of 2021 the minimum hourly wage in Tokyo, Japan is of 985 yen. One can compare this minimum hourly wage to other prefectures in the country: Osaka has a minimum hourly wage of 936, and Kyoto’s minimum hourly pay is of 882. Okinawa on the other hand, has some of the countries lowest hourly wages, at 762 yen.

If the minimum wage was increased to 1,500 yen, as suggested here, in Okinawa, it would cause havoc for many businesses and the overall economy as well. It would have to be an incremental increase to adjust for local and regional economies.

https://checkinprice.com/average-and-minimum-salary-in-tokyo-japan/

@Yubaru

I think there is a problem with your source. The minimum wages in Tokyo is 1013 yens and will go to 1041 after the salary increase.

https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/minimumichiran/

For the Shakai hoken : it depend of the size of the company :

https://www.city.annaka.lg.jp/gyousei/shimin/shiminseikatsu/files/Shakai-hoken.pdf

https://www.generalunion.org/legal-issues/1346-shakai-hoken-laws-are-changing-in-2016-how-will-you-be-affected

Yabaru that is a very fair point, incremental would ease it for businesses. At the same time if people have more money (free time) they will spend more.

If I'm not mistaken, every prefecture has a different minimum wage. So, is it that are raising ¥28 throughout Japan & the ¥930 is for the Tokyo area ?

Inaccurate reporting the minimum wage in the US is $15.00 per hour and currently it is very hard to get workers to except that pay because they say they can not live on that hourly salary!!!

Japan's minimum wage ranks fifth among the Group of Seven industrialized nations except for Italy which has no legal minimum wage, after France's $12.2, Germany's $12.0, Britain's $11.1 and Canada's $10.5, according to Organization for Economic Cooperation and Development data for 2020. The United States is the lowest at $7.3.

interesting that small and mid sized firms look to be hit hardest.

A typical result of government intervention.

Good for Italy in not getting in the way.