Minimum Wage in Japan: Rates, Trends & Compliance

If you’re hiring in Japan, it’s important to adhere to the latest laws surrounding minimum wage to remain compliant as an employer. Learn what the updated minimum wage is, how it applies to different workers, and factors influencing minimum wage in Japan.

Iconic landmark in Japan

Capital City

Tokyo

Currency

Japanese Yen

(

¥

)

Timezone

GST

(

GST +9

)

Payroll

monthly

Employment Cost

16.20%

What Is the Minimum Wage in Japan?

As of 2026, Japan's national average minimum wage is approximately ¥1,118 per hour, and regional rates generally ranging from around ¥1,023 to ¥1,226 per hour (approximately USD 7.6–9.1/hour, depending on exchange rates). However, this rate varies by region, with Tokyo having the highest minimum wage at ¥1,226 per hour, and other prefectures such as Osaka, Kanagawa, and Aichi following closely behind. In contrast, rural areas like Akita and Okinawa have lower minimum wages, though all prefectures now exceed ¥1,000 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

Prefecture Minimum Hourly Wage (JPY)
Tokyo ¥1,226
Kanagawa ¥1,225
Osaka ¥1,177
Aichi ¥1,140+
Hyogo ¥1,116
Chiba ¥1,140
Hokkaido ¥1,075
Miyagi ¥1,038
Hiroshima ¥1085
Fukuoka ¥1057
Okinawa ¥1,023

Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: On average, the minimum wage across Japan is ¥1,118 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 ¥1,000 to ¥1,200 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 in Japan, especially those employed full-time in hospitals, monthly earnings are typically well above average wage levels. Once fully qualified and experienced, many doctors earn the equivalent of around ¥1,000,000 or more per month, far exceeding the national minimum wage. While early-career doctors may start lower during training years, income rises steadily with experience and specialization.
  • Engineers: Engineers, particularly in technology and software-related fields, commonly earn between roughly ¥500,000 and ¥1,000,000+ per month, depending on experience, role, and employer. These earnings are significantly higher than standard minimum wage levels, especially for mid-level and senior professionals
  • Lawyers: Lawyers in Japan typically earn salaries well above minimum wage benchmarks, with many earning the equivalent of approximately ¥580,000 to ¥1,000,000 per month or more, depending on experience, firm size, and area of specialization. Even at entry level, legal salaries generally sit far above statutory wage floors.

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 has climbed steadily over recent years, reflecting ongoing efforts to boost earnings amid labour shortages and inflation. In 2025 the national weighted-average minimum wage reached about ¥1,121 per hour, with all 47 prefectures above ¥1,000 per hour for the first time on record and major regions like Tokyo remaining at the top of the table.

Looking ahead to 2026, forecasts suggest a further increase to around ¥1,130 per hour on average as policymakers pursue gradual wage growth toward longer-term goals. The Japanese government has set an ambitious target of boosting the national average minimum wage to ¥1,500 per hour by the late 2020s, a benchmark framed as necessary to improve living standards and reduce income disparities as demographic and economic pressures mount.

These adjustments continue to play out against broader labour-market dynamics, including strong wage negotiations in the private sector and pressure from labour groups for faster progress. While rising minimum wages help raise the floor for workers, achieving national targets will require sustained annual increases and ongoing political and economic coordination.

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.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

Author profile picture

ABOUT THE AUTHOR

Milani Notshe

Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.

Back to Top

Copied to Clipboard

FAQs About Minimum Wage in Japan

What is the current hourly or daily minimum wage in Japan?

The current minimum wage in Japan varies by prefecture (administrative devision), with a national weighted average of about ¥1,118 per hour, and regional rates generally ranging from around ¥1,023 to ¥1,226 per hour (approximately USD 7.6–9.1/hour, depending on exchange rates).

Are there exceptions to the minimum wage law in Japan?

There are few exceptions, but some interns or trainees who are part of educational programs may not be entitled to receive minimum wage, depending on the nature of their role.

How often is the minimum wage reviewed in Japan?

The minimum wage is reviewed annually by the Japanese government, with changes typically announced every October.

What is the minimum wage vs. living wage in Japan?

While the minimum wage ensures workers receive the bare minimum, it often does not meet the standard required to live comfortably, especially in high-cost cities like Tokyo. The living wage in these areas would typically be much higher to account for housing and daily living expenses.