Japanese Prime Minister Proposes Salary Cuts for Herself and Cabinet in Major Reform Initiative

The pay cut proposal is part of Japan PM's broader commitment to administrative and fiscal reform.

Tokyo:

Newly elected Japanese Prime Minister Sanae Takaichi plans to introduce a revision to the public servant remuneration law that would implement pay cuts for herself and her cabinet ministers during the current extraordinary session of Parliament, according to government sources reported by The Japan Times.

The proposal, which may be discussed at a meeting of relevant ministers as early as Tuesday, would suspend additional allowances currently paid to the Prime Minister and Cabinet ministers on top of their regular lawmakers' salaries.

This initiative reflects Takaichi's broader commitment to administrative and fiscal reform. She has consistently advocated for reducing ministerial compensation, stating at her October inaugural news conference, "I'll work on a law revision so that (cabinet members) do not receive pay exceeding lawmakers' salaries."

The Japanese government is considering specifying in the revised legislation that the extra allowances for the Prime Minister and Cabinet ministers will not be provided "for the time being."

Currently, Japanese lawmakers receive a monthly salary of JPY 1.294 million. The Prime Minister receives an additional allowance of JPY 1.152 million, while Cabinet ministers get JPY 489,000 in extra compensation, according to The Japan Times.

Under existing cost-cutting measures, the Prime Minister already returns 30 percent of this additional pay, and ministers return 20 percent. This effectively reduces their allowances to approximately JPY 390,000 and JPY 110,000, respectively, as confirmed by Japan's Chief Cabinet Secretary Minoru Kihara.

The planned salary reductions have gained support from the Japan Innovation Party (JIP), the Liberal Democratic Party's new coalition partner, which has also advocated for reducing lawmakers' privileges. JIP co-leader Fumitake Fujita praised Takaichi's reform initiative, calling it "a wonderful initiative."

However, not everyone supports the proposal. Democratic Party for the People leader Yuichiro Tamaki criticized the pay cut plan as "a symbol of the deflationary mindset," questioning its timing as the government attempts to boost household incomes nationwide.

"I have mixed feelings," admitted one incumbent Cabinet member, reflecting division within the government regarding the political and economic implications of the decision, according to The Japan Times.