Many Small Firms Eye Closures after Minimum Wage Hike: Survey

   Tokyo, March 6 (Jiji Press)--A survey has found that 15.9 pct of smaller companies in Japan would consider closing or suspending their business if minimum wages are raised 7.3 pct in fiscal 2025 in line with a government target.
   The survey, disclosed Wednesday, was taken by the Japan Chamber of Commerce and Industry from January to February, covering small and midsize businesses across the country. Valid responses came from 3,958 companies.
   Japan needs to hike minimum hourly wages by 7.3 pct each year to achieve the government's target of raising the national average of minimum wages to 1,500 yen within the 2020s.
   The share of respondents that answered that they will consider closing or suspending their business reached 20.1 pct among companies with up to 20 employees located in areas outside ordinance-designated major cities.
   "We found that it is difficult to raise the minimum wages by 7.3 pct every year to achieve the target," an official of the chamber said. "The hike must be decided based on the reality of small and midsize companies' ability to pay."

(2025/03/06-10:32)

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