Minimum Wage in Japan: Rates, Trends & Compliance

What Is the Minimum Wage in Japan?

As of April 1, 2025, Japan's minimum wage is set at an average of ¥1,054 per hour across all prefectures. However, this rate varies by region, with Tokyo having the highest minimum wage at ¥1,163 per hour, and other prefectures such as Osaka, Kanagawa, and Aichi following closely behind. In contrast, rural areas like Akita and Aomori have lower minimum wages, ranging from ¥900 to ¥951 per hour.

These rates reflect a 5.1% increase from the previous year, marking the largest annual rise in Japan's minimum wage in recent history. The increase aims to address inflationary pressures and improve workers' purchasing power.

Minimum Wage in Japan Based on Region

Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: On average, the minimum wage across Japan is ¥1,054 per hour. This figure provides a baseline for employers to comply with, but many regions, especially large cities, will exceed this rate.

Reasonable Minimum Wage: Reasonable minimum wages are generally higher than the average and are typically adjusted according to regional cost-of-living factors. For instance, in Tokyo, the reasonable minimum wage would be much higher due to the increased living costs compared to rural regions.

Typical Minimum Wage: The typical minimum wage in Japan ranges between ¥900 to ¥1,100 per hour, depending on the region. For example, workers in urban centers like Osaka or Tokyo will generally earn above the typical wage rate, while rural areas may offer wages closer to the national average or slightly below.

How Does Minimum Wage Apply to Different Workers In Japan?

Japan’s minimum wage law applies uniformly to all workers, though there are specific nuances depending on the worker type.

Full-Time Employee Wages

Full-time employees in Japan are guaranteed the minimum wage for their work. While the wage is fixed nationally, regional differences in pay exist, meaning workers in cities like Tokyo or Osaka may see wages above the base level.

Part-Time Employee Wages

Part-time employees are also entitled to the same minimum wage as full-time workers in Japan. There are no specific wage reductions for part-time work, and employers must comply with the national or regional wage standards, depending on the location of employment.

Interns and Trainees

Interns and trainees may or may not be entitled to the minimum wage depending on their program structure. If the internship or training involves work that contributes to the employer’s business, they are entitled to the minimum wage. However, internships or training periods that are purely educational or voluntary may not fall under minimum wage requirements.

Expats

Expatriates working in Japan are also entitled to the same minimum wage as local employees. The minimum wage laws apply equally to foreign workers, and they must receive at least the regional minimum wage, irrespective of their nationality.

Minimum Wage for Top Paying Roles In Japan?

 
• Doctors: For doctors, especially those employed in public hospitals, starting salaries can range from ¥500,000 to ¥700,000 per month, which is significantly higher than the minimum wage.
 
• Engineers: Engineers, particularly in fields like technology, can earn between ¥350,000 and ¥500,000 per month, also much higher than the standard minimum wage.
 
• Lawyers: Lawyers in Japan typically earn between ¥400,000 and ¥800,000 per month, depending on their experience and specialization, far above the minimum wage for entry-level positions.

Factors Influencing Minimum Wage in Japan

Minimum wage rates in Japan can be influenced by a variety of factors, including industry-specific conditions, economic conditions, and government policies.

Industry-Specific Variations

Minimum wage rates in Japan can vary widely between industries. Sectors such as healthcare, IT, and finance generally pay well above the minimum wage due to the high demand for skilled professionals. Conversely, industries like retail or hospitality may have wages closer to or at the minimum wage level.

Economic Conditions

Economic factors such as inflation, the job market, and the broader economic conditions in Japan significantly impact minimum wage levels. In times of economic growth or inflation, the government may raise the minimum wage to ensure that workers' purchasing power is not eroded. This is also influenced by the region's specific economic health.

Government Policies and Legislation

The Japanese government reviews and adjusts the minimum wage on an annual basis. The Ministry of Health, Labour and Welfare sets the minimum wage each year, taking into account economic conditions, inflation, and recommendations from the regional wage councils. Employers are required to comply with these adjustments to remain legally compliant.

Tax Implications of Minimum Wage

In Japan, even workers earning the minimum wage are subject to income tax, but only those earning above a certain threshold are heavily taxed. Additionally, employees contribute to social security, health insurance, and pension schemes. Employers are responsible for withholding these contributions from wages, including minimum wage earners.

Minimum Wage History and Trends in Japan

Japan's minimum wage trajectory has seen significant progress, with the national average reaching ¥1,054 per hour in 2025, up from ¥1,004 in 2024. This increase marks a continuation of the government's commitment to enhancing workers' earnings amid rising inflation and a tightening labour market. Notably, Tokyo's minimum wage stands at ¥1,163 per hour, the highest in the country, reflecting regional economic disparities.

In 2025, the Bank of Japan (BOJ) anticipates a 5.1% rise in the average minimum wage, the largest in recent history, driven by efforts to address inflation and stimulate domestic demand. However, the BOJ also warns that such wage increases could contribute to higher service prices, potentially impacting inflation targets . Looking ahead, Prime Minister Shigeru Ishiba's administration has set an ambitious goal to raise the national average minimum wage to ¥1,500 per hour by 2029, aiming to enhance living standards and address income disparities . While this initiative has garnered support from workers, it faces opposition from small and medium-sized enterprises (SMEs) concerned about the financial strain of such increases .

How To Stay Compliant When Hiring in Japan With Playroll

Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:

 
• Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
 
• Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
 
• Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.