Minimum Wage in Japan (2026 Guide): Hourly Rates, Tokyo Wages & USD Comparison

What Is the Minimum Wage in Japan?

The minimum wage in Japan (known as “saitei chingin” in Japanese) is the legally mandated lowest hourly pay that employers must offer workers. Unlike some countries that set a single national minimum wage, Japan uses a regional system where each of the 47 prefectures sets its own minimum wage rate based on local economic conditions, cost of living, and labor market dynamics.

Japan’s minimum wage system is governed by the Minimum Wages Act and overseen by the Ministry of Health, Labour and Welfare (MHLW). There are two types of minimum wages in Japan:

• Regional minimum wages – Set by each prefecture and applicable to all workers in that region, regardless of industry.
• Industry-specific minimum wages – Set for certain industries (such as manufacturing or machinery) and are typically higher than the regional rate. When both apply, the higher rate takes precedence.

This system applies equally to all workers in Japan, including part-time employees, contract workers, and foreign nationals on valid work visas. Employers who pay below the minimum wage face penalties under Japanese labor law.

What Is Japan’s Current Minimum Wage in 2026?

As of 2026, the national weighted average minimum wage across all 47 prefectures in Japan is ¥1,121 per hour. This figure reflects the latest revision that took effect between October 2025 and March 2026, depending on the prefecture. It represents a record increase of ¥66 (approximately 6.3%) from the previous year’s national average of ¥1,055.

This was the largest annual minimum wage hike in Japan’s history since the current system was introduced in 1978. For the first time, all 47 prefectures now exceed ¥1,000 per hour, a historic milestone driven by government efforts to combat inflation, address labor shortages, and improve workers’ purchasing power.

Key Figures for 2026

Looking ahead, forecasts from Trading Economics suggest the national average could rise to approximately ¥1,130 per hour by the end of 2026, as the Japanese government continues to push toward its ambitious target of ¥1,500 per hour by the late 2020s.

Minimum Wage by Prefecture (Tokyo, Osaka, and More)

Since Japan’s minimum wage is set at the prefectural level, hourly rates vary significantly depending on where you work. Major metropolitan areas like Tokyo, Kanagawa, and Osaka have the highest minimum wages, while rural prefectures in regions like Tohoku, Shikoku, and Kyushu tend to have lower rates.

Below is a breakdown of minimum wages in major prefectures (effective from October 2025):

*Based on an approximate exchange rate of ¥156 = $1 USD (February 2026). Exchange rates fluctuate daily.

If you’re looking for work in Japan, keep in mind that Tokyo and Kanagawa consistently offer the highest hourly wages, which is one reason these areas remain popular among international workers and students.

Minimum Wage in Japan in USD: How Much Is It in Dollars?

For Americans and other English-speaking expats, understanding Japan’s minimum wage in U.S. dollars provides valuable context. At an exchange rate of approximately ¥156 to $1 USD (as of February 2026), here’s how Japan’s minimum wage converts:

By comparison, the U.S. federal minimum wage is $7.25 per hour, meaning Japan’s Tokyo minimum wage is actually higher than the U.S. federal rate in dollar terms. However, many U.S. states and cities have significantly higher minimum wages (e.g., California at $16.50/hour, Washington at $16.66/hour), so the comparison depends on where in the U.S. you’re coming from.

It’s important to note that the yen-to-dollar exchange rate fluctuates considerably. When the yen was stronger (e.g., around ¥110 per dollar in 2021), Japan’s minimum wage was worth significantly more in USD. Currency volatility is an important factor for international workers sending money home or comparing living standards.

Monthly Salary Based on Japan’s Minimum Wage

While the minimum wage in Japan is expressed as an hourly rate, most full-time employees in Japan receive monthly salaries. To estimate what a minimum wage worker earns per month, we can calculate based on standard full-time working hours.

Full-Time Calculation (40 hours/week)

Assuming a standard work schedule of 8 hours per day, 5 days per week (approximately 173 hours per month):

Keep in mind that these are gross amounts before taxes and social insurance deductions. After mandatory deductions for income tax, health insurance, pension contributions, and employment insurance, a typical worker takes home approximately 75–80% of their gross salary. For a Tokyo minimum wage worker, that means a net monthly income of roughly ¥160,000–¥170,000 ($1,025–$1,090 USD).

Part-Time Workers

Many international students and working holiday visa holders work part-time in Japan. Student visa holders are typically limited to 28 hours per week (or 40 hours during school breaks). At Tokyo’s minimum wage of ¥1,226 per hour, working 28 hours per week generates approximately ¥137,312 per month ($880 USD), before taxes.

How Is the Minimum Wage Determined in Japan?

Japan’s minimum wage is determined through an annual review process overseen by the Central Minimum Wages Council, a tripartite body under the Ministry of Health, Labour and Welfare (MHLW). The process involves representatives from three groups: employers, labor unions, and public interest members (typically academics and economists).

The Annual Review Process

Each summer (usually July–August), the Central Minimum Wages Council convenes to recommend target wage increases. Prefectures are categorized into three groups (A, B, and C) based on their economic conditions, and each group receives a recommended increase. Individual prefectural councils then finalize the exact amounts, sometimes exceeding the national recommendation. New rates typically take effect in October, though some prefectures may implement changes as late as the following March.

Factors Considered

The council evaluates several key factors when determining wage adjustments: the consumer price index and inflation trends, regional economic conditions and GDP growth, labor productivity and business capacity to pay, labor market conditions including unemployment and job-to-applicant ratios, and comparison with wages in similar industries and regions. In recent years, the Japanese government has also set explicit policy targets for minimum wage growth, most notably the goal of reaching a national average of ¥1,500 per hour by the late 2020s.

History of Minimum Wage Increases in Japan

Japan’s minimum wage has increased steadily over the past two decades, with the pace of increases accelerating significantly since 2023. Here is a timeline of the national weighted average minimum wage:

The acceleration in recent years has been driven by several factors: persistent inflation above the Bank of Japan’s 2% target, chronic labor shortages exacerbated by Japan’s aging and declining population, strong wage negotiations during the annual spring “Shunto” labor talks, and government policy targeting higher wages to stimulate consumer spending and economic growth.

Can Foreigners Work at Minimum Wage in Japan?

Yes, Japan’s minimum wage law applies equally to all workers regardless of nationality. Whether you are Japanese, American, European, or from any other country, you are entitled to at least the minimum wage for the prefecture in which you work. This protection extends to all types of employment: full-time, part-time, temporary, and dispatched (staffing agency) workers.

Common Visa Types for Working in Japan

The type of work you can do and the hours you can work depend on your visa status. International students on a “College Student” visa can work up to 28 hours per week (40 hours during long school breaks) with a “Permission to Engage in Activity Other Than That Permitted” permit. Working holiday visa holders (available to citizens of select countries) can work full-time for up to one year. Holders of work visas such as Engineer/Specialist in Humanities/International Services, Skilled Worker, or Specified Skilled Worker visas can work full-time with no hourly restrictions in their designated field.

Industries Popular Among Foreign Workers

Many foreign workers in Japan, especially students and working holiday visa holders, start in industries that commonly pay at or near the minimum wage. These include convenience stores (conbini), restaurant and food service jobs, hotel and hospitality positions, factory and warehouse work, and English teaching (though this often pays above minimum wage). It’s worth noting that some employers, particularly in Tokyo and other competitive labor markets, pay above the minimum wage even for entry-level positions due to persistent labor shortages.

Minimum Wage vs Cost of Living in Japan

While Japan’s minimum wage has been rising, the cost of living—especially in major cities like Tokyo—remains a critical consideration for anyone budgeting on a minimum wage salary.

Typical Monthly Expenses in Tokyo

As the table shows, rent is by far the biggest expense in Tokyo. A minimum wage worker in Tokyo earning approximately ¥160,000–¥170,000 net per month would find it very tight to rent a standard one-room apartment alone. This is where shared living options become essential.

Is Japan’s Minimum Wage Enough to Live in Tokyo?

The short answer: it’s possible, but it requires careful budgeting and smart housing choices. A full-time minimum wage worker in Tokyo takes home roughly ¥160,000–¥170,000 per month after taxes and deductions. If you’re renting a standard one-room apartment for ¥80,000–¥100,000, that leaves very little for food, transportation, and other necessities.

How to Make It Work: Affordable Housing in Tokyo

One of the most effective ways to live comfortably on a minimum wage in Tokyo is to reduce your housing costs through share houses and furnished apartments. XROSS HOUSE offers furnished share houses and apartments across Tokyo starting from around ¥30,000 per month, with utilities included or available at low additional cost. Our properties include:

• Fully furnished rooms – No need to buy furniture, saving significant move-in costs
• Shared kitchens, bathrooms, and common areas – Reducing your monthly rent substantially compared to a private apartment
• No key money, no guarantor required – Major cost savings for foreigners who may not have a Japanese guarantor
• Convenient locations throughout Tokyo – Including Ikebukuro, Shinjuku, Shibuya, and other popular areas near major train lines
• English-speaking support – Making the move-in process smooth for international residents

By choosing a share house with XROSS HOUSE at around ¥40,000–¥50,000 per month, a minimum wage worker can keep total living expenses around ¥100,000–¥120,000 per month, leaving a comfortable cushion for savings, entertainment, and unexpected expenses.

Explore XROSS HOUSE properties: https://x-house.co.jp/en/

Frequently Asked Questions About Minimum Wage in Japan

What is the minimum wage in Japan per hour in 2026?

The national weighted average minimum wage in Japan is ¥1,121 per hour as of 2026. Tokyo has the highest rate at ¥1,226 per hour, while the lowest rates (¥1,023) are found in prefectures like Kochi, Miyazaki, and Okinawa.

What is the minimum wage in Japan in USD?

At an exchange rate of approximately ¥156 = $1 USD (February 2026), Tokyo’s minimum wage of ¥1,226/hour equals about $7.86 USD. The national average of ¥1,121/hour is approximately $7.19 USD. However, exchange rates fluctuate, so these dollar amounts change over time.

What is the minimum wage in Japan per month?

Based on full-time hours (approximately 173 hours/month), a worker earning Tokyo’s minimum wage of ¥1,226/hour would earn a gross monthly salary of approximately ¥212,098 ($1,360 USD). After deductions, take-home pay is typically around ¥160,000–¥170,000.

Is the minimum wage the same across all of Japan?

No. Japan does not have a single national minimum wage. Each of the 47 prefectures sets its own minimum hourly wage. Tokyo (¥1,226) and Kanagawa (¥1,225) have the highest rates, while rural prefectures like Okinawa (¥1,023) have the lowest. The national weighted average is ¥1,121.

Do foreigners receive the same minimum wage as Japanese workers?

Yes. Japan’s minimum wage law applies to all workers regardless of nationality, visa type, or employment status. International students, working holiday visa holders, and skilled workers are all entitled to at least the minimum wage for their prefecture.

Can you live in Tokyo on minimum wage?

It’s possible but requires careful budgeting. The biggest challenge is housing costs. Renting a private apartment in Tokyo on a minimum wage salary leaves very little for other expenses. Many people on minimum wage opt for share houses or furnished apartments like those offered by XROSS HOUSE, which can cut housing costs in half and make living in Tokyo much more affordable.

Summary: What You Should Know About Minimum Wage in Japan

Japan’s minimum wage system is unique, regionally structured, and evolving rapidly. Here are the essential takeaways for anyone planning to work or live in Japan in 2026:

The national weighted average minimum wage is ¥1,121 per hour (≈$7.19 USD). Tokyo offers the highest minimum wage at ¥1,226 per hour (≈$7.86 USD). All 47 prefectures now exceed ¥1,000 per hour for the first time in history. The minimum wage applies equally to Japanese and foreign workers. A full-time minimum wage worker in Tokyo earns roughly ¥212,000 gross per month. After taxes and deductions, take-home pay is approximately ¥160,000–¥170,000. The government targets ¥1,500/hour by the late 2020s, so continued increases are expected.

For foreigners coming to Japan, understanding minimum wage rates is just one part of the equation. Equally important is finding affordable housing that allows you to live comfortably on your income.

XROSS HOUSE specializes in providing affordable furnished share houses and apartments across Tokyo for international residents. With rooms starting from around ¥30,000/month, no key money, no guarantor required, and English-speaking support, we make it easy for newcomers to start their life in Japan—even on a minimum wage budget.

Find your new home in Tokyo with XROSS HOUSE → https://x-house.co.jp/en/