Japanese companies have agreed to raise wages by an average of 5.10 percent in this year’s spring wage talks, marking the first time in 33 years that a more than 5 percent increase has been offered. This move comes as salary growth has failed to keep pace with inflation, as reported by the country’s largest labor union, Rengo, on Wednesday.
The final tally of pay negotiations from over 5,000 member unions revealed an average monthly wage hike of 15,281 yen, surpassing last year’s average pay rise of 3.58 percent. Prime Minister Fumio Kishida has been pushing for corporations to offer pay rises that outstrip inflation, aligning with the government’s goal to combat falling real wages.
In response to these demands, major companies such as Toyota Motor Corp. and Hitachi Ltd. have met or exceeded their unions’ expectations. Meanwhile, smaller and medium-sized enterprises have seen an average increase of 4.45 percent in wages, reflecting a positive trend in overall wage growth.
The collaboration between labor unions and business federations signals a joint effort to create a sustainable cycle of wage hikes and price increases, ultimately benefiting both employees and businesses in Japan.
© KYODO