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On July 21, 2021, the Prime Minister held the 11th meeting of the Council on Economic and Fiscal Policy in 2021 at the Prime Minister’s Office.

At the meeting, the participants engaged in intensive discussions on monetary policy, commodity prices, and other issues as well as discussions on the minimum wage and the economic and fiscal projections for medium to long term analysis.

Following the discussion, the Prime Minister said,
 
 “Today, we discussed preparing the environment that would smooth the way for raising the minimum wage and examined our mid- to long-term economic and fiscal policy.
 
The minimum wage for FY2021 will rise by a rough target of 28 yen per hour, a record increase. This will be put in place in October, following local discussions on the issue.
 
Amid the prolonged impact of the novel coronavirus disease (COVID-19), many small- and medium-sized enterprises (SMEs) face severe business conditions. Taking such factors into full consideration as decreasing sales and increasing costs resulting from the rise in the minimum wage this time, we will provide careful support to sustain businesses and protect employment.
 
To this end, we will continue the special measure in the subsidy rate for the Employment Adjustment Subsidy, while relaxing requirements for receiving it and increasing subsidies to reconstruct businesses at the strong request of business operators. Moreover, we will provide well-tailored support to respond to the impacts of COVID-19 and the situation surrounding the rising minimum wage.
 
In doing so, we will prepare the environment that would smooth the way for raising the minimum wage and correct the expanding income disparity, while making the momentum of wage increases even stronger.
 
As for economic and fiscal management in the future, we will make all-out efforts to contain COVID-19 infections at the earliest possible time by, first of all, thoroughly implementing measures against infections and proceeding with vaccinations.
 
The tax revenue for the last fiscal year reached a record high level. This was reflected in the economic and fiscal projections for medium to long term analysis presented today which showed that we will achieve primary balance surplus in FY2025 by realizing economic growth and continuing efforts to improve government expenditures.
 
Toward the post-COVID-19 era, we will drastically prioritize green, digital, creating vibrant communities, and addressing the declining birth rate in the budget and tax system, carry out bold regulatory reforms, and review existing schemes from scratch, thereby securing employment, increasing wages, and expanding investments.”