Japanese Minimum Wage
The Japanese Labor Ministry agreed last week to target an average of 1002 yen per hour this fiscal year. While each prefecture sets its own minimum wage, the plan would bring the national average to above 1000 yen for the first time, with the government hoping higher pay will encourage consumption and economic growth. (The minimum hourly wage in the prefecture I live in has been 944 yen since October 2022.)
This change would drive up wages in the service industry, which faces a constant labor shortage. The new rates are expected to be adopted around October. The government has sought to raise the average minimum wage of 1000 yen since the mid-2010's, but smaller companies have resisted, claiming to lack the resources to offer higher hourly wages.
Other countries have recently put more dramatic wage hikes in place to counter inflation. Romania raised its minimum wage by 17.6% in January; Australia by 8.7% in July; and Turkey, where inflation is over 15%, raised the minimum wage by by 34%.
What is the minimum wage where you live? Do you think it is enough or should it be higher?
5 comments:
I think most people would be happy to see an increase in hourly wages and salaries.
But at the same time, the price of everything is soaring. I don't think it's in a good state of balance.😔
I live in Australia where pay rates vary widely according to job and experience.
During my daughter’s time at university she supplemented her allowance by working part time as a retail assistant. I can’t remember her exact hourly rate, but think it was around $28 per hour. If she worked Sunday or closed the store, it was closer to $37 per hour. Working public holidays was a real treat as she would get more than double her usual rate.
Unfortunately, rates of pay here are so complicated that even large organizations with dedicated accounts departments get it wrong and then find themselves being fined for non compliance.
Whilst I think our rates of pay are perhaps too high, 1000 yen seems too low.
In Sweden, as of 1st April 2022, the minimum hourly wage was 142:- SEK. With today's exchange rate that means 1,907 yen/hour, but please remember that at least 30% will be deducted for taxes.
Not only the employee, but the employer is taxed, 31,42%.
The one that really benefits from work is the Taxman!
I have no idea how that compares with America.
Minimum wage in Germany has been raised to 12€ in 2022 and is set to be raised again to 12,41€ in 2024. I'm not sure it's enough to really close the gap between the lower and upper classes and actually battle inflation, though.
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