Employees in Japan in line for largest pay raise in three decades
Major organisations in Japan have agreed to an average wage hike of 3.8% for the coming fiscal year, which represents the largest pay raise in about three decades for employees in the country.
According to Japanese trade union confederation Rengo, the average hike rate of 11,844 yen (US$90.21) per month was based on a preliminary survey of 805 unions affiliated with the labour organisation. Although changes in the way the survey is conducted make it difficult to compare with historical data before 2013, Rengo officials confirmed that the average pay hike of over 3% is achieved for the first time since 1994.
Highlighting how organisations have responded to unions’ requests on pay hikes as employees continue to be hit by consumer price rises, Tomoko Yoshino, Rengo chief, said, “Many unions received in full or exceeded their demand for wage hikes.”
Japanese Prime Minister Fumio Kishida has previously called for higher wages to combat the rising living costs, which have been exacerbated by a weak yen currency and higher commodity prices, resulting in the highest inflation rate in Japan in four decades.
While Japan’s top organisations have concluded the talks and agreed to substantial pay raises, negotiations at small and medium enterprises will start from April to June, and Rengo will update the pay negotiation results in several stages before compiling final results in the summer, reported CNA.