Gunma and Tochigi prefectures to raise minimum wages to record high

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The Local Minimum Wage Councils in Gunma Prefecture and Tochigi Prefecture each reported to the labor bureau chiefs of each prefecture regarding revisions to the minimum wages for fiscal 2021. In Gunma, the hourly wage was 865 yen, up 28 yen from fiscal 2020, and in Tochigi, it was 882 yen, up 28 yen. It is expected to be revised at the beginning of October after going through procedures such as filing an objection.

The minimum wage has been raised in both prefectures for 18 consecutive years. The year-on-year rate of increase in hourly wages was 3.35% in Gunma and 3.28% in Tochigi. If implemented as recommended, the amount of increase in both prefectures will be the largest since fiscal 2002, when the current system of showing the minimum wage by the hour was adopted.

In fiscal 2020, due to the economic deterioration caused by the new coronavirus, the increase in Gunma was 2 yen and Tochigi was 1 yen.

Minimum wage is the minimum wage that a company must pay to its employees. Based on the guideline indicated by the central minimum wage council of the country, it will be decided for each prefecture.

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