A Japanese government panel has agreed to a record increase in the average minimum hourly wage. The decision comes while rising prices of food and energy are putting a squeeze on many low-income households.
The panel is proposing that the national per-hour wage be hiked by 50 yen, or about 5 percent, on average. That brings it to 1,054 yen for this fiscal year, or about 6.90 dollars, also a record high.
Minimum-wage levels are set by each prefecture based on the labor ministry panel’s recommendation.
Panel members say they considered inflation’s impact on low-income workers. They also noted that some employers have struggled to pass on their higher costs.
The members say they placed importance on this spring’s wage negotiations involving labor unions, leading to wage growth of more than 5 percent.
The panel aims at extending this trend to lower-income workers, who tend to be non-regular and employed by small and medium-sized firms.
The final figures will be decided at each prefectural panel in August and go into effect from October.