Japan Govt Starts Debates on FY 2026 Minimum Wages

A Japanese government council started discussions at a meeting Friday on compiling its proposal on the size of hike in minimum wages for fiscal 2026. In this year's "shunto" labor-management negotiations, the wage hike rate has topped 5 pct for the third straight year. As the pace of growth in prices in the nation is slowing, however, attention has been paid to whether a hefty increase in minimum wages will be secured following a record hike posted in the previous year. The Central Minimum Wages Council, which advises the labor minister, is expected to submit its proposal within July after holding debates based on wage levels, prices and companies' abilities to pay. Minimum wages are set by each of the country's 47 prefectures. Specifically, related councils of the prefectures decide revisions in minimum wages based on the proposal from the central government council.