Japanese politicians' vow to up minimum wage by 40% raises concerns

Push comes as SMEs are already struggling to pass on higher prices

20241021 Election and small and medium-sized enterprise

Leading parties are promising to bump the minimum wage to 1,500 yen ($10.06) per hour by 2029, up more than 40% from the current 1,054 yen. (Photos by Koji Uema and Kotaro Igarashi)

LISA KIM, AKANE OKUTSU and TAMAYO MUTO, Nikkei staff writers

TOKYO -- In the final sprint to Japan's general election on Oct. 27, Prime Minister Shigeru Ishiba and major political parties are vowing to raise the minimum hourly wage to a level experts say would put more strain on small and midsize enterprises.

The campaign pledges come as the country faces a labor shortage and consumers feel the pinch of higher prices.

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