July 31 (UPI) — A Japanese government panel on Wednesday recommended the nation’s largest minimum wage increase in nearly 20 years, which would push hourly earnings in major cities like Tokyo above 1,000 yen for the first time.
The labor ministry’s advisory panel issued the recommendations after marathon meetings that began mid-Tuesday. It proposed raising the national hourly minimum to 901 yen — equivalent to $8.30 — in fiscal 2019, also a record level. The minimum wage would be higher in certain, larger cities.
Seventeen rural areas would see an average of 700 yen ($6.45) per hour, whereas Tokyo and Kanagawa would have the highest, at about 1,010 yen ($9.33) per hour.
In previous years, the minimum wage has risen about 25 yen a year.
Some critics say, however, whatever workers gain in the added wages will likely be consumed by the country’s 2 percent tax hike.
Other analysts say the higher wage will help part-time workers, teenagers and other non-traditional workers — but put a greater financial burden on employers.
Japan’s minimum wage is decided locally in each of the country’s 47 prefectures. Local governments will submit revised wage proposals next month, and changes would be implemented in October.
