Why Is the Salary for the “Specific Skilled Worker (Construction)” Status Set at “1.1 Times the Minimum Wage” or Higher? An Administrative Scrivener Explains How to Calculate the Monthly Salary Your Company Needs

Introduction

In the construction sector, when hiring foreign workers with specific skills, the Ministry of Land, Infrastructure, Transport, and Tourism’s assessment process for the “Plan for the Recruitment of Workers with Specific Skills in the Construction Sector” stipulates that the salary must be “at least 1.1 times the minimum wage.” If the salary falls below this standard, the company will be asked to make corrections; and if the issue cannot be resolved, the recruitment plan will not be approved.

We often receive questions from companies such as, “Why does it have to be 1.1 times?” and “Ultimately, how much do we have to pay?” This article will answer both of these questions.

*This article is intended for foreign workers with Type 1 Specialized Skills. The minimum wage is calculated based on the revised rate for Reiwa 8.

Why “1.1 Times”? | Because, as someone who’s been through it, I accept it

Foreign nationals with Specific Skilled Worker Type 1 status in the construction sector are accepted as workers with certain skills and practical experience. Those who have completed the Technical Intern Training Program Type 2 generally have accumulated about three years of experience on construction sites.

On the other hand, the minimum wage is the minimum threshold that must be paid even to those without experience. If a person with three years of experience is paid only the minimum wage, it means that experience is not being properly valued.

A notification from the Ministry of Land, Infrastructure, Transport and Tourism (March 28, Reiwa 4) also states that if a salary is less than 1.1 times the minimum wage, “it cannot be recognized that the skill and experience are reflected in the compensation amount.” The Ministry’s application guidelines further explain that for companies whose Hello Work job postings state “No experience required; monthly salary starting at 250,000 yen,” the required salary for Specific Skilled Foreign Workers must be “250,000 yen plus the amount equivalent to three years of pay raises.” This shows that the Ministry of Land, Infrastructure, Transport and Tourism itself treats Specific Skilled Foreign Workers as “workers with approximately three years of experience.”

In other words, the 1.1-times multiplier is a numerical standard indicating that “since we are hiring them as experienced workers, we must pay a salary that is higher than the minimum wage for inexperienced workers.” However, the basis for calculating why the increase is exactly 10 percent cannot be confirmed from the published materials.

Why Compare It to the “National Weighted Average”? | Be Especially Cautious in Rural Areas

The standard is 1.1 times the “higher” of the following two amounts:

・The regional minimum wage for the prefecture where the business is located
・The nationally weighted average of regional minimum wages (Reiwa 8: 1,177 yen)

Since the notification states that “certification will not be granted if either figure is lower,” the higher of the two—that is, the higher figure—serves as the standard.

The comparison with the national weighted average is intended to prevent the concentration of foreign workers in major metropolitan areas. From the outset of the system, the Ministry of Land, Infrastructure, Transport and Tourism has stated that it would also take into account comparisons with national wage levels. If companies in rural areas set wages low based on local minimum wages, foreign workers would flock to urban areas with higher wages. By setting the national average as the lower limit, the system ensures that a certain standard is maintained even in rural areas.

In Reiwa 8, the regional minimum wage will exceed the national weighted average in only seven prefectures: Tokyo, Kanagawa, Osaka, Saitama, Chiba, Aichi, and Kyoto. For the remaining 40 prefectures, the standard will be 1.1 times the national weighted average (1,294.7 yen per hour). This is why companies in rural areas are more likely to fall below the standard when calculating wages based solely on the local minimum wage.

How to Calculate the Monthly Salary Your Company Needs

The required monthly salary (wages within the prescribed working hours) is calculated using the following formula:

(The higher of the regional minimum wage and the national weighted average) × 1.1 × Annual scheduled working hours ÷ 12

Annual scheduled working hours are calculated as: Annual scheduled working days (365 days – Annual holidays) × Scheduled working hours per day. Since annual holidays and daily working hours vary by company, be sure to calculate this based on your company’s work rules and annual calendar.

Calculation Example: A company in Gunma Prefecture with 110 annual holidays and an 8-hour workday

・Standard: Gunma Prefecture 1,120 yen < National Weighted Average 1,177 yen → 1,177 yen × 1.1 = 1,294.7 yen
・Annual scheduled working hours: (365 days – 110 days) × 8 hours = 2,040 hours
・Required monthly salary: 1,294.7 yen × 2,040 hours ÷ 12 = 220,099 yen or more

Points to Note When Calculating | Compare Based on “Regular Wages”

The comparison is made not against the total gross pay, but against the “regular wages” paid unconditionally and at a fixed rate each month. The following items are not included:

・Fixed overtime pay and deemed overtime pay
・Perfect attendance bonuses and allowances based on the number of days worked
・Conditional allowances, such as those paid “upon obtaining a certain qualification”
・Allowances whose amounts vary based on individual circumstances, such as the number of dependents or actual commuting distance

The determination is based on the eligibility criteria, not the name of the allowance.

Specific example: Suppose the company in Gunma Prefecture mentioned above planned to pay a total of 250,000 yen, consisting of a base salary of 190,000 yen, a certification allowance (a fixed monthly amount based on held certifications) of 20,000 yen, a perfect attendance allowance of 10,000 yen, and a fixed overtime allowance of 30,000 yen.

The only components included in the regular wages are the base salary and the qualification allowance, totaling 210,000 yen, which works out to approximately 1,235 yen per hour. While this exceeds 1.1 times Gunma Prefecture’s minimum wage (1,232 yen), it falls short of 1.1 times the national weighted average (1,294.7 yen); therefore, the plan will not be approved as is. This is a typical scenario for regional companies: “It meets local standards but still doesn’t pass.”

Furthermore, the effective date of the minimum wage varies by prefecture, and the review of the acceptance plan takes about one and a half to two months. To be on the safe side, it’s best to set salaries with a margin of safety, factoring in the anticipated revised amount.

A 1.1-fold increase is merely the “lower limit”

Even if you meet the 1.1x requirement, that’s not the end of the process. During the review of the recruitment plan, authorities will also verify that the compensation offered is equal to or higher than that of a Japanese national with equivalent skills. Furthermore, the same 1.1x standard applies to the salary of the Japanese national selected as the comparison benchmark. We’ll explain how to select this comparison benchmark in a separate article.

Support from the Nasu Administrative Scrivener Office

When preparing and submitting applications for the Specific Skilled Worker (Construction) Acceptance Plan, our firm reviews your company’s work rules, wage regulations, and annual calendar prior to submission to ensure that your salary structure meets the required standards. Please feel free to consult with us even at the early stage when you’re simply wondering, “Will the acceptance plan be approved with this salary?”

Reference Materials (Verified in October 2026)

Ministry of Land, Infrastructure, Transport and Tourism, “Notice Regarding the Certification of Remuneration Amounts in Specific Skilled Worker Acceptance Plans for the Construction Sector” (March 28, Reiwa 4)

https://www.mlit.go.jp/tochi_fudousan_kensetsugyo/content/001473553.pdf

Ministry of Land, Infrastructure, Transport and Tourism: “Regarding Online Applications for the Construction-Specific Skills Worker Acceptance Plan [New]” (April 4, 2025)

https://www.mlit.go.jp/tochi_fudousan_kensetsugyo/content/001603430.pdf