TOKYO -- This fiscal year saw unprecedented increases in minimum wages across Japan's 47 prefectures. The lowest minimum wage, after implementation, will be 1,023 yen (around $7) in Kochi, Miyazaki and Okinawa prefectures. However, when viewed annually, another prefecture takes the bottom spot. What is the overlooked pitfall hidden in the minimum wage "rankings"?

The minimum wage is the lowest amount employers are required to pay workers per hour. A national council divides the prefectures into three ranks, A to C, based on economic conditions and sets guidelines for wage increases. This fiscal year, the guidelines were set at raises of 63 yen (about 43 cents) for the A and B ranks, and 64 yen for rank C. Prefectural councils then determine the actual amounts based on these guidelines.

Significant increases and delays

During the prefectural council meetings held in August and September, many unveiled raises significantly exceeding the national guidelines. At the same time, there was a trend of delaying the implementation of the new minimum wages to much later than usual.

In fiscal 2024, all prefectures but Tokushima implemented the changes in October. This year, however, 27 prefectures set their dates for November or later, with six, including Akita, Gunma and Tokushima, extending into 2026. These are the first such delays since the current system was established in fiscal 2002.

A gap of about six months exists between Tochigi Prefecture, the earliest to implement on Oct. 1, and Akita Prefecture, the latest on March 31, 2026.

Calculating annually

Professor Yukiko Abe of Hokkaido University, specializing in labor economics, adjusted for the implementation delays and calculated the annualized minimum hourly wage for each prefecture from Oct. 1, 2025.

According to her calculations, Akita Prefecture had the lowest annualized wage at 991 yen (about $6.70), followed by Kochi and Okinawa prefectures at 1,011 yen, and Kumamoto and Fukushima prefectures at 1,013 yen.

When considering the delays over the year from October 2025, 25 prefectures had increases that were more than 1 yen below the national guidelines. Although Akita Prefecture increased its minimum wage by 80 yen, the six-month delay meant the actual increase was only equivalent to 40 yen, falling 24 yen short of the guideline.

Other prefectures significantly below the guidelines included Gunma (17 yen below), Tokushima (14 yen below) and Yamanashi (10 yen below). Abe commented, "While the amounts appear to have increased substantially, when annualized, they do not meet the national guidelines."

Calls for government action

The Minimum Wage Act does not specify implementation dates, so delays are not illegal. This year, the national council's report included a statement encouraging thorough deliberation at the local level regarding implementation dates, contributing to the delays.

This effectively gave official sanction to incorporating business owners' perspectives instead of adhering strictly to the record-high national guidelines.

However, some prefectural councils have said that the national government should provide direction on implementation dates. The Wakayama Prefecture council declared, "This is not an issue for individual local decisions; we would like the central council to present a consistent policy."

Similarly, the Okinawa Prefecture council stated, "Instead of leaving discussions to local councils, a reexamination, including potential necessary legal revisions, should be conducted immediately."

(Japanese original by Nanako Hori and Aya Shiota, Lifestyle, Science & Environment News Department)

Minimum wage hikes in many prefectures effectively below guidelines set by Japan gov't