Japan to Hike Minimum Wage by 3%

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  • Japan to Hike Minimum Wage by 3%

In an effort to spur growth and boost earnings the Japanese government has recommended minimum wage be raised by 25 yen to 848 yen per hour, the exact amount that was added last year.

The labour ministry made the recommendation earlier this week, according to a spokesperson at the ministry.

Local governments evaluate the proposal and set pay for their prefecture, with the changes typically taking effect from October.

Prime Minister Shinzo Abe’s government and the central bank want wages in Japan to rise in hopes that that will fuel consumer spending and spur inflation. While minimum pay has increased for every year for more than a decade, overall wages are still stagnant and only rose 0.5 percent last year.

The central government only has direct control over the pay of public servants and the recommended minimum wage. By boosting the latter, it seeks to apply some pressure to boost pay across the economy.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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