Japanese minister calls for firms with strong earnings to increase salaries

Japanese industry minister Koichi Hagiuda has called on businesses with strong earnings to implement pay hikes for their workers. 

“We do want companies with good earnings to raise employees’ pay at a time when a ‘K-shaped’ economic recovery with gaps between industry sectors is increasingly visible,” he said at a meeting  with Masakazu Tokura, chairman of the Japan Business Federation, or Keidanren, according to Nippon news.

Keidanren will urge profit-earning companies to increase wages for their employees, said Tokura, addressing reporters after the meeting.  “We can’t see a uniform pay hike, but will continue to support the momentum for pay hikes,” he added.

Japan’s economic policy panel had earlier last week proposed a stimulus package to support the economy, measures of which include increasing help for firms which are actively raising the wages of their workers. 

READ: Japan PM promises stimulus package for pandemic relief

The package will also include a fund carved out to give universities more resources to boost research in science and technology, according to a draft, reports Reuters.

The government is set to finalise the stimulus package on November 19.