Fiscal year 2026 minimum wage revisions agreed in 30 prefectures, signs of easing in competition to raise them

As of the 19th, 30 prefectures had finalized the revised minimum wage for fiscal 2026. Of these, 17 prefectures exceeded the guideline for increases set by the Central Minimum Wage Council (an advisory body to the Minister of Health, Labor and Welfare), and the additional amount ranged from 1 to 4 yen, which is smaller than last year's maximum of 18 yen. The effective date is scheduled for October as usual, and there are signs that the heated competition for increases is easing.

In July, the Central Council decided to raise the rate by 54 yen for A-rank cities such as Tokyo, 56 yen for B-rank cities such as Hokkaido and Nagano, and 56 yen for C-rank cities such as Akita and Okinawa. Local minimum wage councils for each prefecture will discuss specific revision amounts based on this. Of the 17 prefectures, Miyagi and Tottori have increased their wages to 60 yen, 4 yen more than the guideline, and their hourly wages are 1,098 yen and 1,090 yen, respectively.

On the 18th, the Akita Regional Minimum Wage Council decided to raise the wage by 59 yen, 3 yen more than the target, and settled on 1,090 yen. Last year, it was set at 80 yen, 16 yen higher than the target, and the effective date was significantly delayed to the end of March this year to give companies time to prepare, but this time it is expected to take effect on October 14th. Tomoaki Usuki, chairman of the council, said, ``The outflow of young people to the Tokyo metropolitan area is an issue, and we want to narrow the wage gap with Tokyo and other countries as much as possible.''

Behind the easing of competition is the government's softening stance, which has effectively postponed its goal of raising the national average minimum wage to 1,500 yen in the 2020s. Another factor seems to have been that the Central Council pointed out that it was "not appropriate" to raise the level to a level that is far removed from the actual situation in the region in order to avoid being at the "bottom spot."

Meanwhile, Governor Kotaro Nagasaki participated in the Yamanashi Prefectural Council and requested positive consideration of raising the wage, saying, ``It is difficult to maintain a living on the current minimum wage.'' Raising the minimum wage is essential for workers to maintain their livelihoods, but it will also increase the burden on small and medium-sized enterprises suffering from high costs. The revised amounts for all prefectures are expected to be finalized by the end of this month.