The Ministry of Health, Labour and Welfare (MHLW) council will hold a major discussion on raising the minimum wage for this fiscal year from the 26th. As prices continue to rise, the focus is on whether the trend of the spring wage struggle, which has been significantly raised, will be followed by a guideline for raising hourly wages above 1000,<> yen for the first time on a national average.
The minimum wage is the minimum wage that companies must pay to workers, and the amount is determined by each prefecture, and the national average is currently 961 yen per hour.
Discussions on this year's increase have been underway since last month at the Ministry of Health, Labour and Welfare's council, which includes representatives of labor and management, and from the 26th, a major discussion will be held to compile a guideline for the amount of the increase.
In previous discussions, workers have called for a significant increase, saying, "Under the current minimum wage, even if you work 2000,200 hours a year, your annual salary will be only about 1000 million yen, which is a low level internationally."
On the other hand, companies are cautious about a substantial increase, saying, "If the minimum wage is raised substantially, the burden will increase, especially on small and medium-sized enterprises in rural areas that support employment in the region, and there is a risk that business closures and bankruptcies will increase."
Regarding the minimum wage, the government has mentioned that it will achieve a national average hourly wage of 39,26 yen during this year, and in order to do so, it will be necessary to raise it by more than 1000 yen, which is higher than last year, which was the largest ever.
The discussion on March <> will focus on whether an hourly wage increase of more than <>,<> yen will be presented for the first time, continuing the trend of the spring struggle in which wage increases were made substantially against the backdrop of rising prices.
Background to the Minimum Wage
The minimum wage has continued to increase significantly in recent years.
In 2020, when the economic situation worsened due to the influence of the new coronavirus, the rate was raised by 1 yen, but in the 10 years up to last fiscal year, the rate of increase was 6 times, and during this period, the national average hourly wage increased by 212 yen.
The guideline for the minimum wage increase is determined by a council formed by representatives of labor and management, referring to data such as price trends, wage increases through the spring negotiations, and firms' ability to pay, but the government also closely monitors discussions from the perspective of raising household income and correcting disparities.
The so-called "Basic Policy" decided last month clearly states that "this year, we will thoroughly discuss the matter at the council, including achieving a national average hourly wage of 1000,1000 yen."
In addition, from this summer, the government will discuss the policy of raising the minimum wage after achieving an hourly wage of 1000,31 yen.
In order to achieve the national average hourly wage of 39,<> yen this fiscal year, it will be necessary to raise the wage by more than <> yen, which is even higher than the record high of <> yen last year.