Five Principles of Wage Payment:
In Japan, the minimum wage varies by region and industry. Each prefecture can set its minimum wage, and certain industries have their own standards. Part-time workers receive proportional pay compared to full-time counterparts, while temporary workers are entitled to the minimum wage if they perform the same tasks as regular employees. Young workers, including students, must receive at least the local minimum wage.
Unlike many countries with a single national minimum wage, Japan employs a decentralized system. Prefectural minimum wage rates consider regional cost of living variations, economic conditions, and other factors affecting wage levels. Consequently, there is a significant range in Japan’s minimum wage between rural areas and metropolitan hubs like Tokyo.
Increased Wages for Overtime Work, Work on Days Off and Night Work (Article 37)
In case an employer requires a worker to work overtime, at night (10:00 p.m. to 5:00 a.m.) or on a statutory day off, the employer must pay the worker an increased wage in accordance with the following increase rate:
Different type of Overtime Pay:
| Overtime Work | +25% (at least) |
| Night Work | +25% (at least) |
| On a statutory day off | +35% (at least) |
| Overtime exceeding 60 hours per month | +50% (at least) |
Due to a revision of the Labour Standards Act, the rate of increased wages for work exceeding 60 hours of OT per month is 50% (1 April 2023).
Links One is a leading regional HR and Payroll Dashboard Solution that caters to all your HR and payroll requirements across Asia & the Middle East.
The decentralized method aims to balance uniformity and sufficiency across prefectures while allowing flexibility to respond to local demands. The minimum wage in Japan remains a significant topic in policy discussions as the country strives to maintain social cohesion and economic competitiveness, highlighting the importance of balancing the interests of businesses, workers, and society.
Our publications give you a clear overview of key labour law regulations. We cover major tax, labour law, payroll and visa information. It is designed to get you updated at-a-glance!
Updated on: December 2025
Get in touch with one of us today to start streamlining your HR processes across Asia & the Middle East.