Why Japan is raising care worker salaries in 2026

Japan to Raise Care Worker Salaries by ¥19,000 Monthly Starting 2026: Government Moves to Address Labor Shortage

Japan is taking a major step to strengthen its caregiving workforce. Beginning June 2026, the government will introduce a monthly wage increase of up to ¥19,000 for care workers. Employees at welfare facilities for people with disabilities will also receive the same increase. This policy aims to improve working conditions, secure talent, and address the ongoing labor shortage in the caregiving sector.

Raising care worker salaries

Why Japan Is Raising Care Worker Salaries

Care workers in Japan have long earned lower wages than the national average, contributing to chronic staffing shortages. With an aging population and rising demand for care services, the government is prioritizing wage reform to:

• Make caregiving jobs more competitive

• Improve worker retention

• Attract new talent into the industry

• Support long‑term stability in welfare services

The decision was revealed on December 22 and reflects the government’s commitment to strengthening the social welfare workforce.

How the Wage Increase Will Be Funded

To finance the salary increase, the government plans to temporarily raise compensation rates for care services:

• 2.03% increase for care worker compensation

• 1.84% increase for disability welfare facilities

These adjustments will help facilities manage higher payroll costs without reducing service quality.

Final Decision Expected Soon

Finance Minister Satsuki Katayama and Health, Labor and Welfare Minister Kenichiro Ueno are expected to finalize the plan on December 24. Once approved, the wage increase will take effect in fiscal 2026.

A Positive Shift for Japan’s Caregiving Sector

This wage reform marks a significant investment in Japan’s caregiving workforce. By narrowing the wage gap and improving job conditions, the government aims to build a more resilient and motivated care sector capable of supporting the country’s rapidly aging population.