Japan's labour ministry panel increases national minimum wage by 5% to 1,054 yen ($6.85) per hour, marking the largest-ever jump.
Japan's labour ministry panel has decided to increase the national average minimum wage by 5% to 1,054 yen ($6.85) per hour, marking the largest-ever jump. This move aligns with the Bank of Japan's goal of achieving sustainable inflation and strong wage growth to potentially raise interest rates near zero levels. The rise in minimum wage aims to boost households' purchasing power, but could impact small businesses' profits. A meeting between labor and business representatives in August will determine pay hikes, with new minimum wages set for implementation in October. The Japanese government has a new target of raising minimum wages to 1,500 yen by the mid-2030s.
July 23, 2024
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