Foreign-worker salaries require a two-stage check

These are separate tests. A salary above the local minimum wage is not automatically sufficient for an SSW or another work-status application.

Japan’s regional minimum wage changes for 2026

On September 3, 2026, the Ministry of Health, Labour and Welfare published the results of the recommendations made by the regional minimum wage councils in all 47 prefectures. The weighted national average in those recommendations is JPY 1,177, up JPY 56 from JPY 1,121 in the previous year.
JPY 1,177 is not a single statutory hourly rate for all of Japan. It is a weighted average of the regional recommendations. After the recommendation and objection procedures, each prefectural labour bureau director formally determines the rate. The planned effective dates differ by prefecture and run from October 1 to December 2, 2026.

Kanagawa and Tokyo rates from October 1, 2026

The applicable prefecture is generally based on the workplace where the employee actually works, not merely the address of the company’s head office.

The minimum wage also applies to foreign workers

A person working as an employee in Japan is not excluded from the minimum wage because of nationality. The rule generally applies to full-time employees, fixed-term contract workers, part-time staff and students working part-time.
Even if the employer and worker agree on a wage below the statutory minimum, that agreement is invalid to that extent and is treated as an agreement for the minimum wage. The employer must pay the shortfall.

How to check a monthly salary

Do not compare the total monthly payment directly with the minimum wage. First remove salary items that are excluded from the minimum-wage comparison. Then divide the eligible monthly wage by the average prescribed working hours per month.

Where annual prescribed hours are used, the calculation is: eligible monthly wage × 12 ÷ total prescribed working hours per year.

Items generally excluded from the comparison

• Commuting allowance, family allowance and perfect-attendance allowance
• Wages paid on a temporary basis
• Wages paid for periods longer than one month, including bonuses
• Overtime and holiday premium pay, and the premium portion for late-night work

A high gross payment does not by itself show compliance if much of the amount consists of excluded allowances or overtime premiums.

Kanagawa Labour Bureau’s 2026 example

For an eligible monthly wage of JPY 215,000 and 2,040 prescribed working hours per year:

This is below Kanagawa’s JPY 1,279 rate effective October 1, 2026. Employers must use their actual salary components and prescribed working hours.

Fixed overtime allowance

Separate the ordinary wage from the portion paid as fixed overtime or another premium. Check the minimum wage using the ordinary wage portion, and separately check whether the fixed amount fully covers the legally required premium for the overtime, holiday or late-night work actually performed.

Specified Skilled Worker: minimum wage alone is not enough

An SSW employee must receive remuneration equal to or higher than that paid to a Japanese worker performing comparable work. The comparison should consider position, duties, level of responsibility, age, relevant experience and the employer’s wage rules.
If there is no Japanese employee doing exactly the same job, the employer must still explain the amount objectively. Use the wage rules where available. Otherwise, compare the SSW employee with the closest Japanese role and explain differences in duties, responsibility and experience. If no meaningful internal comparator exists, evidence concerning equivalent work and experience at comparable businesses may be needed.

Employment for Skill Development, Technical Intern Training and work visas

Employment for Skill Development

The Employment for Skill Development program takes effect on April 1, 2027. Pre-implementation applications for approval of Employment for Skill Development Plans began on September 1, 2026. Remuneration must be equal to or higher than that of a Japanese worker performing the same work, while the minimum wage applies separately.
Do not assume that a salary set just above the 2026 minimum will remain valid for work starting in 2027. Recheck the applicable minimum wage at the actual start of work and after later revisions. Employers must also check the field-specific operational guidelines and examination criteria available for the relevant sector.
See our guide to pre-implementation applications for Employment for Skill Development Plans.

Technical Intern Training

The minimum wage applies to technical interns, and remuneration must also satisfy the applicable equal-treatment requirement. When changing wages stated in an approved technical intern training plan, check whether an application for approval of the change or a notification is required under the current OTIT guidance.

Engineer/Specialist in Humanities/International Services

This status also requires remuneration equal to or higher than that received by a Japanese person engaged in comparable work. Employers must separately review the statutory minimum wage, the professional nature of the duties, the relationship between the applicant’s education or experience and the role, and consistency among the contract, working-conditions notice, job description and application documents.

Foreign students and Dependent-status part-time workers

Foreign students and people with Dependent status generally need permission to engage in activities outside their status before working part-time. A comprehensive permission is generally limited to 28 hours per week, subject to the terms of the permission.

• Working within 28 hours does not permit a wage below the minimum wage.
• Paying the minimum wage does not permit work beyond the authorized activity or time limit.
• Before employment, check the residence status, period of stay and permission information on the back of the residence card.

Contracts and start dates around October 1

For minimum-wage purposes, the contract date, immigration application date, COE issue date or date of entry does not preserve the old rate. The actual date of work and the location of the workplace matter.
Even if a contract was signed in September, hours worked in Kanagawa or Tokyo on or after October 1, 2026 must be paid at least the new applicable rate. Employers whose payroll period crosses the effective date should be able to distinguish work before and after the change.

Employer checklist

• Confirm the minimum wage and effective date for the actual workplace.
• Separate base pay, allowances, bonuses and fixed overtime pay.
• Convert the eligible monthly wage using the actual prescribed working hours.
• Confirm that work on and after October 1 meets the new Kanagawa or Tokyo rate.
• For SSW and other relevant statuses, compare remuneration with a suitable Japanese employee.
• Prepare objective evidence where there is no direct Japanese comparator.
• Make the duties, contract, wage rules and immigration documents consistent.
• For students and Dependent-status workers, check permission and working hours.
• For work beginning in 2027, plan a fresh minimum-wage check before the start date.

Frequently asked questions

Primary government sources

• MHLW: Recommendations for the FY2026 regional minimum wage revisions
• Kanagawa Labour Bureau: FY2026 Kanagawa minimum wage decision
• Kanagawa Labour Bureau: Minimum wage calculation examples
• Tokyo Labour Bureau: Minimum wage information
• MHLW minimum wage comparison guide
• Immigration Services Agency: Important points when employing SSW workers
• Immigration Services Agency: Explanation of remuneration for an SSW worker
• Immigration Services Agency: Employment for Skill Development overview and laws
• Immigration Services Agency: Permission to engage in activities outside status

This article provides general information based on materials available on September 4, 2026. Regional rates, field-specific guidelines, forms and procedures may change. Complex payroll, fixed-overtime and work-rule questions may require advice from a labour and social security attorney or the competent Labour Standards Inspection Office. Immigration conclusions require review of the individual, employer, duties and supporting documents.