Employer Compliance Checklist

To remain compliant with the new regulation, employers operating in Osaka Prefecture should take the following actions:

• Identify affected employees: Review payroll records to determine which staff currently earn below the new minimum rate.
• Adjust hourly rates: Ensure all qualifying employees receive at least ¥1,177/hour for work performed on or after 16 October.
• Check industry-specific rates: Confirm whether any employees fall under sector-specific wage rules that mandate higher minimums.
• Recalculate premiums: Update calculations for overtime, late-night pay, and other allowances tied to the base wage.
• Communicate changes: Notify employees of the wage adjustment and revise employment contracts or wage statements as needed.
  
  

What This Means for Businesses

Employers are urged to act promptly to avoid non-compliance penalties and maintain transparency with their workforce. The wage hike may also impact budgeting and staffing strategies, particularly for small and medium-sized enterprises.

As Japan continues to refine its labour standards, Osaka’s wage update serves as a reminder of the importance of proactive payroll management and employee engagement.

Japan – Global Insights

For further detailed guidance on payroll, employment law, and compliance in Japan, visit our Japan Global Insight guide on the activpayroll website. You can also explore broader regional updates and expertise in the APAC Global Expertise web section.

Next Steps

If you have any questions or need tailored advice, we encourage customers and potential clients to get in touch. Please complete our Contact Us form, and a member of our team will be happy to assist with your queries.