Japan minimum wage rise and income walls impact household work patterns

A survey conducted by Shufu JOB Research Institute, operated by B-style Holdings Co., Ltd., reveals how rising minimum wages and the upcoming removal of the ‘1.06 million yen wall’ in October 2026 are affecting working households in Japan.

Among respondents seeking to balance work and home life, 40.2% stated they do not mind income ceilings, while 25.6% aim for the 1.03 million yen threshold. While 50% of respondents believe rising minimum wages will increase their annual income, those subject to income limits are more likely to reduce their working hours to avoid exceeding thresholds. Specifically, 37.8% of those with income limits reported they would decrease hours to stay within bounds.

The study indicates that for many, the decision to work beyond dependency limits depends on the hourly rate; 89% of respondents would choose to work outside dependency frameworks if the hourly wage reaches 2,000 yen or more. Experts suggest that as the national average minimum wage approaches 1,176 yen, the focus may shift from income ceilings to time constraints related to household management.