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Japan gov't panel to propose another record minimum-wage hike

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Meanwhile, Russia's war in Ukraine since late February has sent energy, raw material and food prices rising globally

Don't forget to add two solid years of unnecessary closures and handouts that had choked out the economy for two years prior to that...

6 ( +18 / -12 )

around ¥5000 a month? easy-street from here on boys and girls.... (⌒▽⌒)

-1 ( +17 / -18 )

Hadn't we better try urging first?

That always does well with the major companies. Urge, encourage, then recommend, then forget it.

Premium Friday - massive success, as everyone who has never seen it happen outside of very well-funded, Dentsu-produced ad campaigns will attest.

"the era of a new capitalism"

Because that always, always turns out well for the people who actually do the work.

4 ( +19 / -15 )

A Japanese government panel is expected to propose

local panels will decide on their minimum wage amounts, which will then be adopted around October.

while the management side, has stressed the need for careful consideration. (NO)

Complicated process!. Can see this going the same way as every other year.

-4 ( +6 / -10 )

Here in the UK the minimum adult wage is 1550 Yen, in a major city there is a thing called a living wage which is 1800 Yen.

6 ( +14 / -8 )

Anybody earning less than $10 an hour in 2022 is nothing more than slave labor. Add to this that employees have to pay the mandatory pension, health insurance and income tax their $7 an hour quickly becomes $4 an hour. Hoora!

The minimum wage should be at least ¥1500 per hour. It is not the 1980’s anymore.

14 ( +25 / -11 )

Reads the Kyodo headline "Record Minimum Wage Hike"

> raising the average minimum wage for fiscal 2022 by a record ¥30 or more from ¥930 ($7) an hour,

"We'd like to see an increase that would be appropriate for the era of a new capitalism," Deputy Chief Cabinet Secretary Seiji Kihara told a press briefing.

That is appropriate for the black joke that is Kishida's New Capitalism.

7 ( +17 / -10 )

Good job J government. Taking care of the Japanese folks.

-10 ( +8 / -18 )

It’s still too low you idiots!!

16 ( +25 / -9 )

A Japanese government panel is expected to propose raising the average minimum wage for fiscal 2022 by a record ¥30 or more from ¥930 ($7) an hour, sources familiar with the plan said Monday, as the country battles accelerating inflation.

(sigh) If 30JPY / hour is "record-breaking", this shows how low the bar is actually currently set...

930 JPY / hour x 160 hours / months = 148,800 JPY / month out of which only 4,800 JPY / month are being added...

I just hope that the J-gov is not hoping the above "record -breaking increase" in income will have households run in the doors to Takashimaya anytime soon...

3 ( +18 / -15 )

Japanese government panel is expected to propose raising the average minimum wage for fiscal 2022 by a record ¥30 or more from ¥930 ($7) an hour, sources familiar with the plan said Monday, as the country battles accelerating inflation.

The minimum hourly rate here is an insult to the workers. record 30 yen increase to ¥930 per hour. Pats on the back all around. For comparison Australia just increased it's minimum wage to $21.40 per hour.

0 ( +13 / -13 )

Don't forget to add two solid years of unnecessary closures and handouts that had choked out the economy for two years prior to that...

and save thousands of lives. You seems to have forgotten that bankruptics hit a record low.

Support measures push Japanese corporate bankruptcies to 50-year low

https://www.reuters.com/business/finance/support-measures-push-japanese-corporate-bankruptcies-50-year-low-2021-08-10/

and everyone who wants a job has a job in Japan.

-11 ( +5 / -16 )

It is great to hear that they are at least trying to raise the minimum wage instead of relying on that trickle down effect which has been proven to be ineffective. Wish they didn't take so long in coming up with a decision to raise the bar at a mere 30 yen per hour.

-1 ( +4 / -5 )

Derek don’t forget the 2.000 yen note that was supposed to spur spending (how was never explained) that couldn’t even be accepted by most vending machines.

Yea, let’s “urge” first cause that always works. And the extra 4,800 gross per month based on a 40 hour work week......

if the government really wanted to hit it’s inflation target of 2%, it would seem that targeting wages would be the most effective way to get it done as well as helping out lower-tier laborers. But 30 yen an hour is probably not enough to keep up with long-overdue price hikes in basic goods.

Remember that Japan hasn’t had a real (hardly even nominal) rise in overall prices (excluding fuel and fresh food which is more volatile) in well over 20 (maybe more like 30) years.

In a deflationary environment, stagnant wages were not THAT big a deal. But with consumables finally hitting the point at which no amount of efficiency can offset increased raw materials costs, overall price levels are rising and stagnant incomes are a huge issue for those at the bottom of the ladder.

The classic economic argument against a minimum wage increase is that it creates unemployment and is inflationary. But Japan is already under-employed and is not yet gripped by uncontrolled increases in overall prices. Not to mention that all the power in the employer-employee contract is held by the former.

mandating an increase in the minimum wage could solve some problems but 30 yen an hour is nibbling around the edge at best.

5 ( +10 / -5 )

and everyone who wants a job has a job in Japan.

Repeating this does not make it true.

Many in Japan cannot get jobs that pay living wages.

Thus the need for the LDP to roll out the sham of a "New Capitalism". Since even the LDP so divorced from the daily lives of Japanese can see that many are not being served by Japan Inc.'s capitalism.

0 ( +15 / -15 )

A record 30 yen per hour rise.

Should be at least 300 yen !!!

What a joke !!

3 ( +14 / -11 )

And in the West people are selling their blood to pay for gas...."

At least in the West we don't have brain shrinking mushrooms coming to get us..

https://japantoday.com/category/national/deadly-brain-shrinking-fungus-is-popping-up-in-parks-several-prefectures-throughout-japan

Japan, very danger.

-15 ( +3 / -18 )

If the central planners are deciding to have annual 2% price rises, you’d think it’d be efficient to decree annual hikes in the minimum wage too, rather than debate about it every year.

Me - I’d go the opposite of central planning and explicitly decentralize decision making - it’d all be up to you and me and the people we economically interact with to decide for ourselves…

… rather than having the central planners butt into everyone else’s business at the behest of someone else, all while drawing tax layer funded salaries from us.

-1 ( +3 / -4 )

30 yen is just a proposal so they'll probably negotiate and settle at 15 yen.

7 ( +11 / -4 )

I used to think the minimum wage was a good idea but it's not good for small businesses as they're most affected. If the rural economy was re-invigorated instead then people could have decent wages with a lower cost of living

3 ( +7 / -4 )

Great news, hope this gift is given to the poor. Now all the posters on here have got what they want, a generous increase for the minimum wage we can all move forward happy.

-12 ( +1 / -13 )

Pats on the back all around. For comparison Australia just increased it's minimum wage to $21.40 per hour.

You need a link to the Quantas website? Cheerio mate, throw a shrimp on the barbie for me.

-6 ( +3 / -9 )

Which country has no minimum wage at all, yet it is the number one country in the world for foreigners wanting to work in? And the economy is doing a lot better than in Japan.

Hint: Starts with "Sing" and ends with "ore".

-5 ( +4 / -9 )

As long as Japanese keep voting in the same people, I have zero sympathy…this is what they want.

-5 ( +8 / -13 )

jansob1Today  06:31 pm JST

As long as Japanese keep voting in the same people, I have zero sympathy…this is what they want.

The majority of Japanese people don't vote for them, but thanks to the messed up voting system that's who they get stuck with.

-1 ( +5 / -6 )

This isn't an economic policy, it's class war.

Meanwhile, Russia's war in Ukraine since late February has sent energy, raw material and food prices rising globally and core consumer inflation in Japan has topped 2 percent in recent months, pressuring households.

Inflation has been rising since long before the Ukraine invasion, driven by massive profiteering and price gouging by corporations, while employees salaries have fallen in real terms.

8 ( +15 / -7 )

New capitalism based on Urgeonomics

Remember that Japan hasn’t had a real (hardly even nominal) rise in overall prices

This is totally untrue have you seen the size of a KitKat here not even the same size as my pinky.

The way they have been raising prices here is by actually lowering the size of items, 20 years ago things here were a lot larger I have seen many items become less and less in size.

4 ( +9 / -5 )

Trickle down economics, is that still a thing?

Poor folks still believe that?

1 ( +5 / -4 )

Minimum wage in Japan is more than half of Australia's minimum wage.

-4 ( +0 / -4 )

My nephew back home makes $15.00 USD / hr. minimum wage and he is only 16. Japan is so far behind on this one it's pathetic.

-1 ( +8 / -9 )

Wish I could get a Vietnamese work visa.

-3 ( +3 / -6 )

Wish I could get a Vietnamese work visa.

Well, good luck to you!

2 ( +5 / -3 )

Trickle down economics, is that still a thing?

It was never a thing, it was just a caricature made up by people who didn’t want to have a debate about good economic policy.

2 ( +6 / -4 )

""Despite the core consumer price index excluding volatile fresh food items exceeding its 2 percent target, the central bank views the rising price trend as temporary and more robust wage hikes are needed to achieve the long-elusive inflation target in a stable and sustainable fashion.""

The way it's done now is BACKWARD, Wages needs to be increased first then a 2 or 3% or whatever inflation can be obtained so people are able to handle the increase,

But now prices are rising, companies are making huge profit's, inflation reached it's target, but salaries are FROZEN, the government STILL discussing wage increase while people are suffering.

-6 ( +3 / -9 )

Funny how the picture accompanying this story has a bunch of 10,000 yen bills lined up. They should have 1,000 yen and some coins scattered about instead.

5 ( +9 / -4 )

Please read the title!!!!! Japan gov't panel to propose another record minimum-wage hike PROPOSED does not mean it will happen. Lets say it does happen, the increase still would not be enough to offset inflation or the cost of living. These companies if they cooperate and give the increases the only thing they will do is increase the COST of their goods and services to offset the increase. What that means, the increase meant nothing just a number where people will say or think they received more but at the stores the cost is still the same or more. Its still too low if they are proposing $7.00 that means it should be double of the proposal which would be $14.00 to help level the living standards of the people.

0 ( +3 / -3 )

A Dickensian wage hike out of the Taro Twist playbook. Kishida's new capitalism won't ever cut the mustard as long as the LDP is dishing out the soup with their chopsticks.

-2 ( +5 / -7 )

sigh... What a record.

The sad thing is that percentage-wise it is still going to be larger than the raises many businesses will give.

-5 ( +2 / -7 )

With extra 30Yen an hour, we can add a new wing to our house.

1 ( +6 / -5 )

A chicken wing!

2 ( +11 / -9 )

to propose raising the average minimum wage for fiscal 2022 by a record ¥30 or more from ¥930 ($7) an hour

Why so much!??!?! Why not make it a cool ¥3 increase??!?!

What is wrong with these morons? I know they have never entered supermarkets ("because it's woman's work") and they don't go to drug stores, because they are unkempt gorillas.

But they DO know how much money they embezzle every month from tax payers. Why don't they take at least 10% of that money they steal every 30 days, and give it to the people at least.

Minimum wage should be no less than 1000 yen per hour, wait, the yen is worthless now. Let me restate that, minimum wage should at least be ¥1500 yen.

Someone get rid of these fools making up absurd numbers............record breaking. Pathetic.

-5 ( +5 / -10 )

When companies try to recruit part time employees they usually advertise in house, at hellowork, or hire a staffing agency to do the job for them. What i don't understand is why the staffing agency pays 100-200 yen more per hour than what is advertised by the company at hellowork? Staffing companies also need to make a cut, so they must be charging them another 200 yen an hour. Why wouldnt these companies just pay their workers a higher wage and cut out the middle man? I am always confused as to how business is run in Japan.

-1 ( +1 / -2 )

What i don't understand is why the staffing agency pays 100-200 yen more per hour than what is advertised by the company at hellowork? Staffing companies also need to make a cut, so they must be charging them another 200 yen an hour. Why wouldnt these companies just pay their workers a higher wage and cut out the middle man? I am always confused as to how business is run in Japan.

Because desperation is a method of control.

-4 ( +1 / -5 )

Put the politicians on a 1000 yen an hour!

Japan is doing worse than countries in SE ASIA now…

-3 ( +7 / -10 )

this inflation will go on up to the point when a day’s wage is not even enough to feed a family. Don’t be left behind at the rapture!

[5] And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. [6] And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.

-3 ( +0 / -3 )

I was surprised recently to see that the first-year JET salary is basically $20K/year. Obviously the exchange rate right now makes that look worse than it may be in terms of purchasing power in Japan, but come on. $20K a year? Geez.

2 ( +3 / -1 )

Well break out the Chuhai and Eel Roe. With that pay raise we can add a nice tin of Corned Beef to our monthly diet. Just think 30 days we eat microwave rice and instant miso soup but boy oh boy day 31 we open that tin of Corned Beef. Talk about the lap of luxury. Thank you our dear over lords.

-4 ( +2 / -6 )

A record increase by 31¥ , let’s all pray that we now all won’t die from sudden and too overwhelming richness. lol

-2 ( +2 / -4 )

 I was surprised recently to see that the first-year JET salary is basically $20K/year

I doubt that Japan will now be able to attract any foreigners to come over to act as teachers. Pay is said to be totally appalling in yen terms but a total disaster in dollar terms.

-7 ( +5 / -12 )

These politicians should only be paid the minimum wage. Obviously they think the minimum wage is sufficient.....

-10 ( +2 / -12 )

For far too long, anything sold in Japan has had a Premium attached to it, simply because, everyone outside of Japan thought Japanese earn way more than them... well, this should hopefully be changing soon. Japanese people bought stuff that was expensive, since they saved up for it, and had no other choice - however, now like the rest of the World, those Savings have been depleted - so any Company selling the same product in Japan for twice that of the price elsewhere should be named and shamed.

0 ( +3 / -3 )

This winter will be a little difficult not only in Japan but also everywhere, so we'd better get ready with wage increases and all other support measures for working people.

-1 ( +0 / -1 )

are they aware that min wage rises are inflationary?

-5 ( +0 / -5 )

A better way to improve peoples wages is to pay them for the compulsory unpaid two hours that most people put up with. and add the extra 31 yen per hour.

1 ( +3 / -2 )

Nice how the article makes it sound like the workers should be bowing and thanking the govt for such a measly amount…! 30c an hour ? Luckily the unions in this country are about as tough as a new born baby!

-3 ( +2 / -5 )

The poverty and homelessness here is so high and especially among the elderly it is so sad. The pension for the elderly if you pay into it on a national level is 50, 000 yen, however, according to a friend of mine they deduct from that from that for health care and so on.

There are so many elderly people working another friend of mine and her husband both late 70's are still working and it is so sad to see and they both have pensions but can't afford to live on them.

3 ( +7 / -4 )

Absolutely pathetic. Just for comparison, the minimum wage in BC, Canada is 1,600 Yen/hour. In the UK it is 1,500 Yen/hour. In Spain it is 1,050 Yen/hour. The dynastic politicians that rule Japan are completely out of touch with the ordinary people.

-1 ( +5 / -6 )

Thats like a whole hapushu extra per week!

-2 ( +1 / -3 )

Where can get an apartment in Tokyo on minimum wage

3 ( +6 / -3 )

A whole ¥30? Oh, wow! Don't spend it all at once, big spenders!!

0 ( +5 / -5 )

A record increase by 31¥ , let’s all pray that we now all won’t die from sudden and too overwhelming richness.

One has to remember that this is regarding the minimum wage.

I would be surprised if many JT commenters are actually earning only the minimum wage. If so, better put one’s time to better use than loitering around the comments here!

-1 ( +1 / -2 )

Good job J government. Taking care of the Japanese folks.

A minimum wage increase of by 31 yen is hardly "taking care" of the Japanese people.

You can't even buy a Black Thunder chocolate bar which is currently sold at 43 yen (incl. tax).

The J government can do better than that.

Free Black Thunders for all!

2 ( +3 / -1 )

What's worse is that it is so easy to imagine that the workers with minimum wages are more prone to be under high stress level of emotional labor usually by serving customers. And JP customers can be pain in the butt especially old men. They don't care if you are a part time worker, they don't care if you are making just $7, they would get furious if you can't provide them with world-class service.

2 ( +3 / -1 )

The low pay minimum is something that affects people in many ways. It is a big reason why there are many who feel futility. Work for a pittance in comparison to the cost of living and it is a reality of which leads to a large number of desolate people in a rich country.

The rich don't have to pay the poor a fair wage, it's a given the wage is enough, so don't complain. And the Japanese people will work in their ignorance to a much higher level than what they're being paid. It's a cultural brain wash, and the stupidity of it is rather infuriating as it leads to over work and ultimate inefficiency.

The idea of 'zeitaku' is made for people to think they deserve only the minimum to live. I've heard some say it is zeitaku to go to a Starbuck's or eat a 2000 yen meal.

The lifestyle quotient becomes inconsequential as the third world economy Japan once was post war became one of the greatest economies in the world, but the idea of every day people's lives moving forward at the same rate hasn't happened.

I'm consistently surprised at how the average Japanese person lives poorly, and a ridiculously low minimum wage contributes heavily to the unhappiness. Many richer people just like the idea of making money and squirrel it away. Some of the richest people I know don't know how to spend money, only to horde it. They aren't generous nor charitable and live only to make money. It's a trait of a poor country's rich people.

Japan and her leaders don't care of people's happiness enough, which makes Japan not the greatest place to live in the world. It's always going to be a 'bimbokusai' place.

-1 ( +2 / -3 )

It would probably help if Japanese “lowered taxes” a bit while raising minimum wage.

2 ( +2 / -0 )

a large number of desolate people in a rich country.

Japan has squandered its richness.

The rich don't have to pay the poor a fair wage, it's a given the wage is enough, so don't complain.

Well no.

If the wage is not worth it to the worker, the work isn’t taken. Who is better placed to decide than the worker themselves?

There is no slavery in people agreeing to work for a wage irrespective of how it relates to whatever the central planners might decree.

And to the extent that there are insufficient good paying jobs in Japan, that can’t be resolved by decreeing a wage below which it is illegal to employ a willing worker.

Japan needs various reforms and probably some culture change to get the economy pumping again and creating demand for more highly skilled workers. Price controls, of which the minimum wage is one, are a failed policy.

And the Japanese people will work in their ignorance to a much higher level than what they're being paid.

It’s a free world.

It's a cultural brain wash, and the stupidity of it is rather infuriating as it leads to over work and ultimate inefficiency.

I think these are different issues. People who do overtime for free are probably not on the minimum wage, either.

Many richer people just like the idea of making money and squirrel it away.

It’s a free world… you do what you like with the money you earned, others do what they like with theirs.

If a rich person doesn’t spend their money, don’t worry the inheritance tax will take half away and the government can blow it away on waste instead.

Saving money is long a Japanese tradition, since hundreds of years ago at least in the Tokugawa days and probably earlier. It didn’t stop Japan from experiencing good economic growth last century, so I don’t think blaming savers is going to be a solution for Japan’s current malaise.

-4 ( +1 / -5 )

Well, so long as the cap of only 100-hours overtime continues to be broken and much of it unpaid, I suppose the companies would survive such a HUGE wage increase, if they go for it.

0 ( +0 / -0 )

Bentoya in Saitama pays 1100 yen an hour, 40 hours a week, plus 25% for overtime up to 45 hours a month, 25% additional for night work from 22:00 to 5:00am, very hard to see job offers below 1000 an hour.

0 ( +0 / -0 )

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