A ¥16 hike in the nation's average minimum hourly wage to ¥780, recommended by an advisory panel to the labor minister this week, fails to make up for the rising costs of living and is far insufficient for the system to function as a safety net for the growing ranks of irregular workers.
The decision by the Central Minimum Wage Council, in which business and labor representatives huddled until the last minute over the margin of the increase, will push up the minimum wage by double-digit figures for the third straight year. The raise takes effect in October.
The minimum wage is expected to exceed the level of livelihood protection provided by welfare benefits in all of Japan's 47 prefectures, including Hokkaido, Miyagi, Tokyo, Hyogo and Hiroshima, where, at present, benefits received by people on welfare exceed the minimum-wage income of workers after tax and social security premiums are deducted.