2025 Survey on the Impact of Minimum Wage Increases for SMEs
A survey of 2,760 SMEs reveals the widespread impact of the 2025 minimum wage hike to 1,121 yen. While it triggers a rethink of overall wage structures, many firms struggle with price pass-through, and there is significant anxiety regarding the 1,500-yen government target.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 01:00
- 🔍 Collected: April 23, 2026 at 16:31
- 🤖 AI Analyzed: April 23, 2026 at 20:48 (4h 16m after Collected)
In fiscal year 2025, the regional minimum wage in Japan saw a weighted average increase of 66 yen, reaching 1,121 yen. Against a backdrop of rising prices and labor shortages, the pace of minimum wage hikes is accelerating, with the government setting a target of 1,500 yen nationwide within the 2020s. Consequently, minimum wage has shifted from a topic limited to specific industries or employment types to a shared premise for the management of most companies.
Particularly for small and medium-sized enterprises (SMEs), there are growing concerns about the impact on overall business operations, including price settings and talent acquisition, alongside wage level revisions. However, the environment varies by industry, company size, and region, leading to differences in how companies perceive and respond to these hikes.
This survey was conducted among member companies of the F&M Club from September 1 to September 30, 2025, with 2,760 valid responses. It aimed to understand how SMEs are facing minimum wage increases and to organize basic information for future management decisions and institutional discussions.
1. Survey Results
The impact of minimum wage hikes is spreading across industries and sizes. Many companies are taking action, moving beyond just raising wages for those directly affected to considering ripple effects on the entire wage system. Conversely, many firms are unable to sufficiently pass on increased labor costs to their prices, revealing a disparity in response status. Industries with institutional constraints find it difficult to cope through individual company effort alone. Regarding the 1,500-yen target, most SMEs hold a cautious or skeptical view due to concerns about business sustainability.
2. Summary
The survey clarifies that minimum wage hikes have become an unavoidable factor for many SMEs. About half of the responding companies reported having employees subject to the minimum wage hike. Notably, the impact is cascading into the entire wage structure; many companies plan to raise wages for employees not directly affected to maintain internal balance. However, the distribution of wage levels after the revision is concentrated within a '+100 yen' range from the minimum, indicating limited financial leeway. Price pass-through has progressed in manufacturing and transport but remains stagnant in medical, welfare, and service sectors due to structural and institutional issues. While companies are pursuing internal efficiency and labor-saving investments, the feasibility varies greatly. Many express that the 1,500-yen goal is currently unattainable, citing concerns about rising total labor costs and the 'income ceiling' for part-time workers. In conclusion, minimum wage is a complex issue involving price settings, industry structures, and corporate capacity, requiring discussions that do not rely solely on individual company efforts.
Particularly for small and medium-sized enterprises (SMEs), there are growing concerns about the impact on overall business operations, including price settings and talent acquisition, alongside wage level revisions. However, the environment varies by industry, company size, and region, leading to differences in how companies perceive and respond to these hikes.
This survey was conducted among member companies of the F&M Club from September 1 to September 30, 2025, with 2,760 valid responses. It aimed to understand how SMEs are facing minimum wage increases and to organize basic information for future management decisions and institutional discussions.
1. Survey Results
The impact of minimum wage hikes is spreading across industries and sizes. Many companies are taking action, moving beyond just raising wages for those directly affected to considering ripple effects on the entire wage system. Conversely, many firms are unable to sufficiently pass on increased labor costs to their prices, revealing a disparity in response status. Industries with institutional constraints find it difficult to cope through individual company effort alone. Regarding the 1,500-yen target, most SMEs hold a cautious or skeptical view due to concerns about business sustainability.
2. Summary
The survey clarifies that minimum wage hikes have become an unavoidable factor for many SMEs. About half of the responding companies reported having employees subject to the minimum wage hike. Notably, the impact is cascading into the entire wage structure; many companies plan to raise wages for employees not directly affected to maintain internal balance. However, the distribution of wage levels after the revision is concentrated within a '+100 yen' range from the minimum, indicating limited financial leeway. Price pass-through has progressed in manufacturing and transport but remains stagnant in medical, welfare, and service sectors due to structural and institutional issues. While companies are pursuing internal efficiency and labor-saving investments, the feasibility varies greatly. Many express that the 1,500-yen goal is currently unattainable, citing concerns about rising total labor costs and the 'income ceiling' for part-time workers. In conclusion, minimum wage is a complex issue involving price settings, industry structures, and corporate capacity, requiring discussions that do not rely solely on individual company efforts.