Japan plans to raise minimum wage by 3% for ¥600 trillion GDP goal

Nov 24, 2015, 08:30 am

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Source from AFP, Yonhap News

By AsiaToday reporter Kim Ye-jin -  Japan's government plans to raise the minimum wage to meet its target of raising nominal gross domestic product (GDP) to 600 trillion yen by 2020.

The Nikkei, formerly known as The Nihon Keizai Shimbun, said on Monday that the Japanese government is planning to raise the minimum hourly wage of 798 yen (KRW 7,500 won) by 3%.
If Japan increases the minimum wage by 3%, there will be an 18-yen (KRW 170 won) increase in the average hourly minimum wage for the 2015 fiscal year, and 24-yen (KRW 220 won) increase for the 2016 fiscal year. By 2020, the minimum hourly wage would reach the 900-yen range.

The Abe government is moving to increase consumer spending, which makes up 60% of GDP, by raising wages and improving labor conditions of part-time and temporary workers.

Japan had slipped into a technical recession for two consecutive quarters with 3Q GDP printing -0.2%.

The proposed wage increases will be discussed in detail at a meeting of the Council on Economic and Fiscal Policy, the government's top advisory panel, on Tuesday. The Abe's government is due to finalize the economic stimulus measures by the end of this month.

Meanwhile, the Japanese government will also set up support measures for small firms to improve competitiveness.

#Japan #minimum wage #¥600 trillion GDP goal #Abe 
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