Minimum Wage Hits a National Average of ¥1,121
With the October 2025 revision, the weighted national average minimum wage reached ¥1,121 — one of the largest increases ever. With every prefecture now above ¥1,000 an hour, we organize the points companies should check and the practical response.
- The big picture of the FY2025 revision
- Which wages count toward the minimum, and which do not
- Three steps companies should check
- Support schemes accompanying the increase
01The big picture of the FY2025 revision
The minimum wage is the floor a company must pay its workers. Regional minimum wages are revised each autumn; for FY2025 the weighted national average rose ¥66 year-on-year to ¥1,121.
02Which wages count toward the minimum, and which do not
When checking whether you meet the minimum wage, note that not all allowances count.
| Category | Examples |
|---|---|
| Counts | Base pay; fixed allowances paid every month |
| Does not count | Commuting, perfect-attendance, family allowances; overtime premiums; bonuses |
03Three steps companies should check
- Convert all employees' wages to an hourly rate and compare with the revised minimum
- Revise the wages of those below it, and reflect this in employment contracts and work rules
- Estimate the increase in social-insurance premiums and labor costs from the wage revision
The minimum-wage increase affects labor costs most in industries with many part-time and casual workers. Early simulation is essential.
04Support schemes accompanying the increase
For SMEs tackling wage rises, schemes such as the Business Improvement Subsidy support capital investment and productivity gains. Pursuing wage increases together with productivity gains can help you respond while keeping the burden down.
Summary
The FY2025 minimum wage averages ¥1,121 nationally. Checking every employee's hourly-equivalent wage is a must.
Commuting allowances, bonuses and the like do not count toward the minimum. Including them hides a shortfall.
Estimate the labor-cost rise early, and consider support schemes such as the Business Improvement Subsidy.
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Sources & References
This article is based on information available at the time of publication. Rules and systems may change. Please consult a professional before making any individual decisions.
