Over two thirds of firms in Japan have no plans to raise base wages this year
Over two thirds of Japanese firms do not plan to raise base wages in labour talks this year, a survey showed.
Instead, pay increases are more likely to come in the form of one-time bonuses, which may not lead to increased household spending, reports The Japan Times.
Japan’s largest business lobby, Keidanren, has called on companies to increase wages, although it has left the degree of pay hikes to each company to decide, based on their business conditions.
Meanwhile, Rengo, Japan’s biggest labour confederation, has demanded 4% wage hikes, a combination of 2% base pay hikes and 2% annual pay hikes.
The survey by Reuters also showed that a slim majority of firms are expecting to increase total pay, which include bonuses. They raised concerns on rising long-term rates, with 40% saying they can tolerate rate increases of up to 0.25%, while another 40% stated that a 0.5% hike can be tolerated.