Archive · 10 Nov 2025
Japan PM Proposes Law Revision for Cabinet Pay Cuts in Fiscal Reform
Japan's Prime Minister, Sanae Takaichi, wants to change a law so that she and her ministers get paid less.
Right now, besides their regular pay as lawmakers, they get extra money as allowances.
The Prime Minister wants to stop these extra payments, at least for a while.
She has talked about this idea for a long time and sees it as part of making the government more efficient and fixing the country's finances.
Her political party's partner thinks it's a great idea.
However, some people disagree.
One politician thinks this move focuses too much on cutting costs and not enough on helping people earn more money.
Even some people in the Cabinet have mixed feelings about it.
Currently, lawmakers get a base salary, and the Prime Minister and ministers get extra amounts on top of that.
While they already return a portion of this extra pay voluntarily, the new law would formally suspend these additional payments.
Prime Minister Sanae Takaichi plans to revise Japan's public servant pay law to reduce her own and Cabinet ministers' allowances.
The proposed revision aims to suspend additional payments received by the Prime Minister and ministers on top of their lawmaker salaries.
This initiative is part of Takaichi's broader plan for administrative and fiscal reform.
The Japan Innovation Party supports the move, while the Democratic Party for the People expresses concerns, calling it symbolic of a 'deflationary mindset'.
Currently, the Prime Minister and ministers voluntarily return a portion of their extra pay, but the revision would formally halt these allowances for the time being.
- Who
- Japanese Prime Minister Sanae Takaichi and her Cabinet, supported by the Japan Innovation Party and criticized by the Democratic Party for the People.
- What
- Prime Minister Takaichi plans to revise the public servant pay law to cut additional allowances for herself and Cabinet ministers, suspending these payments for the time being.
- When
- The proposal could be reviewed by relevant ministers as early as Tuesday, November 11, 2025. The pledge was made at her first press conference in October 2025.
- Where
- Japan (Tokyo)
- Why
- To advance administrative and fiscal reform, reduce ministerial compensation, and as part of a broader plan to cut government spending.
Proponents' View
Critics' View
Rationale for Pay Cuts
Proponents' View
Prime Minister Takaichi aims to revise the public servant pay law to cut allowances for herself and Cabinet ministers as part of a broader fiscal and administrative reform. This move aligns with her long-standing advocacy for reducing ministerial compensation and aims to suspend additional payments to lawmakers' salaries.
Critics' View
Some critics, like Yuichiro Tamaki of the Democratic Party for the People, view the pay cut as symbolic of a 'deflationary mindset' and question its effectiveness when the focus should be on raising household incomes.
Impact and Support
Proponents' View
The Japan Innovation Party, a coalition partner, strongly supports the initiative, seeing it as a positive step in Takaichi's reform agenda. The cuts would formally halt additional payments for the time being.
Critics' View
There are internal divisions and mixed feelings among some Cabinet members regarding the proposal's true impact, with one admitting to mixed feelings about the measure.
- Proposed Action
- Revise the public servant remuneration law to cut additional allowances for the Prime Minister and Cabinet ministers.
- Current Lawmaker Salary
- JPY 1.294 million monthly
- Current Prime Minister Allowance
- JPY 1.152 million monthly (before voluntary return)
- Current Cabinet Minister Allowance
- JPY 489,000 monthly (before voluntary return)
- Voluntary Return by PM
- 30% of extra pay
- Voluntary Return by Ministers
- 20% of extra pay
- Support for the Move
- Japan Innovation Party (JIP)
- Criticism of the Move
- Democratic Party for the People leader Yuichiro Tamaki
Sources
Japanese PM To Revise Law To Implement Pay Cuts For Herself, Cabinet
Japan PM Takaichi to cut her own salary, Cabinet pay as part of fiscal reform push
Japan PM Takaichi signals watering down of fiscal consolidation target
Japan PM Takaichi signals work on new fiscal target
Japan PM Takaichi signals work on new fiscal target
Japan’s PM flags watered-down fiscal goal in push to lift growth
Takaichi flags looser fiscal goal, urges BOJ rate hike caution
