Japan PM hopes businesses can hike wages over 3%

Japanese Prime Minister Fumio Kishida hopes that businesses that have recovered to pre-pandemic levels are able to hike wages for their employees by over 3% next spring. 

“I am hoping for pay hikes that eclipse 3%, which will be appropriate for the launch of the new capitalism,” he said, referring to his vision of realising a virtuous cycle of economic growth and wealth redistribution. 

“I will stand in the forefront to help small- and medium-sized businesses so that they can properly shift raw material, energy and labor costs” onto consumers, he added, reports The Mainichi. 

Masakazu Tokura, chairman of the Japan Business Federation has said that he will call on member businesses to implement wage hikes for their workers.

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The government approved an economic stimulus package last week, which includes cash handouts and vouchers to lower-income households. There are also plans to raise the monthly wages of care workers, nursery school staff and nurses by 1 to 3%,  from current levels.