A panel of Japan’s Ministry of Health, Labour and Welfare's advisory board proposed a minimum wage increase of 63 yen per hour for all workers on August 4. In urban areas such as Tokyo, the increase will be 63 yen, while in regions with lower wages, it will be 64 yen.

If the increase is implemented as proposed, the country’s average minimum wage per hour will rise from the current 1,055 yen to 1,118 yen.

The panel considered factors such as the soaring prices of essential goods and wage increases during the spring labor negotiations exceeded last year’s levels.

During the discussions, labor representatives demanded a significant wage increase, while management representatives sought a modest increase, taking into account the business conditions of small and medium-sized enterprises.

Seven rounds of discussions were held for the first time in 44 years.

Each prefectural advisory committee will determine the actual wage increase amount depending on the set guideline.