Major Japan business lobby says it will not set wage hike goal for businesses

The Japan Business Federation, Japan’s top business lobby, says it will not set a specific target for wage hikes for its member companies, according to informed sources.

The group, otherwise known as Keidanren, will still encourage companies that have recovered their earnings to raise wages in line with efforts by the current administration, according to The Japan Times.

Ahead of the upcoming wage talks that will happen early  next year, Prime Minister Fumio Kishida had expressed hope for companies to raise wages for their employees by over 3%. 

The federation will not set a uniform wage hike goal as the pace of earnings recovery from the pandemic will differ from company to company, said Keidanren Chairman Masakazu Tokura.

It believes that member companies should independently decide on wage raises for their staff, taking into account also efforts by the government to provide a better environment for businesses to hike wages. 

READ: Majority of Japanese companies to freeze or cut wages next year

“It is important to foster corporate culture and workplace environments that make various support systems easily accessible to all employees who face restrictions, irrespective of gender,” it highlighted in a revised draft.