Support Measures for SMEs Facing Minimum Wage Hikes
Overview
On September 3, this fiscal year’s minimum wage was finalized by the local minimum wage councils in all prefectures, bringing the national weighted average to 1,177 yen. The Small and Medium Enterprise Agency will advance enforcement of the Small and Medium-sized Subcontracting Transaction Optimization Act and other measures, fair price pass-through and transactions, subsidies, tax incentives and productivity improvements, and labor-saving and digitalization support. Municipalities, support organizations, trade associations, and chambers of commerce will provide hands-on support and consultation, aiming to reach 1 million cases by the end of this fiscal year.
Key points
- The national weighted average minimum wage for this fiscal year is 1,177 yen.
- We will comprehensively advance support to strengthen the earning power of small and medium-sized enterprises and micro-enterprises and achieve a virtuous cycle of wage increases.
- Push-based hands-on support and consultation services aim to reach 1 million cases by the end of this fiscal year.
Overview
On September 3 (Thursday), this fiscal year’s minimum wage was finalized by the local minimum wage councils in all prefectures. The national weighted average is 1,177 yen.
As the increase in the minimum wage is the second-largest on record, the Small and Medium Enterprise Agency will continue to provide comprehensive support to strengthen the earning power of small and medium-sized enterprises and micro-enterprises and achieve a virtuous cycle of wage increases.
The Small and Medium-sized Subcontracting Transaction Optimization Act and the Small and Medium-sized Subcontracting Transaction Promotion Act, which entered into force in January this year, will be steadily enforced and established in practice, while efforts to ensure fair price pass-through and transactions will be strengthened, including government procurement and private transactions outside the scope of the Small and Medium-sized Subcontracting Transaction Optimization Act.
Impact
Support will be advanced for small and medium-sized enterprises and micro-enterprises affected by minimum wage increases, including market development, productivity improvements, labor-saving investment, and digitalization and AI adoption. For businesses that raise wages, increases in subsidy limits and additional-point measures under various subsidies will continue to be implemented.
Details
In terms of budgets and tax measures, the government will advance market development support through subsidies such as sustainability subsidies, the tax system promoting wage increases for small and medium-sized enterprises, and productivity revolution projects. In addition, nationwide support systems such as Labor-Saving Navi and the Productivity Improvement Supporter System will be established, and the Labor-Saving Investment Subsidy and Digitalization and AI Introduction Subsidy will promote the Labor-Saving Investment Promotion Plan.
By combining push-based approaches and hands-on support by support organizations in coordination with local governments with consultation services initiated by outreach from trade associations and chambers of commerce, the target is to reach 1 million cases by the end of this fiscal year.