Japan issues notices to adjust building maintenance contracts amid minimum wage hikes

Japan's Ministry of Internal Affairs and Communications and the Ministry of Health, Labour and Welfare have issued notices to government agencies and local municipalities regarding adjustments to building maintenance contracts. Following the announcement of minimum wage revision guidelines for fiscal year 2026, the ministries are requesting that contract amounts be reviewed to ensure the appropriate pass-through of labor costs.

This move aligns with the ‘Japan Growth Strategy’ cabinet decision, which specifically names the building maintenance and security industries as sectors where appropriate price pass-through should be promoted. Service providers are encouraged to proactively negotiate contract updates based on these official notices.

In regional developments, the Kochi Local Minimum Wage Council has proposed increasing Kochi Prefecture's minimum wage from 1,023 yen to 1,086 yen. This 63-yen increase represents the second-largest hike in the prefecture's history and exceeds the national guideline of 56 yen. If implemented, the new rate is expected to take effect in late October, potentially moving Kochi above Miyazaki Prefecture in terms of hourly rates.