Japan Proposes Historic Hike in Minimum Wage

In an unprecedented move, a labor ministry panel in Japan is expected to propose a 6% hike in the national average minimum wage for this fiscal year. This proposal, reported by Kyodo news agency, would bring the hourly wage to around 1,118 yen ($7.43), marking the most significant increase since at least 2002.

Prime Minister Shigeru Ishiba's administration has set an ambitious goal of elevating the average minimum wage to 1,500 yen by the end of the decade. The proposed wage hike, exceeding last year's 5% increase, is part of a broader effort to enhance household purchasing power.

While this move aims to benefit workers, it presents a challenge for small businesses that may face reduced profits as they struggle to cope with higher wages. The balance between uplifting workers' earnings and maintaining business viability is at the core of this economic strategy.

(With inputs from agencies.)