Japan to raise minimum wage by record amount

Japan's Ministry of Health, Labour, and Welfare decided to seek a raise in the national average of minimum hourly pay by JPY31, or 3.3% from the current JPY930 this year. The increase, if approved, will be the most on record in terms of the amount and percentage difference since the government started using hourly pay as the benchmark in 2002. The move is part of the government's efforts to boost low-income households that are trying to cope with the increasing costs of living. A steady wage increase of 3% is seen as necessary to keep inflation above the Bank of Japan’s 2% target in a sustainable manner, a government official said. Japanese Prime Minister Fumio Kishida sees wage gains as a key factor to drive growth, while he also seeks a fairer distribution of wealth.