Japanese companies offer biggest pay rise in 32 years in spring wage talks

A survey of major Japanese companies showed they offered their highest monthly pay increases in 32 years during this year’s spring wage negotiations, after Prime Minister Fumio Kishida called on companies to offer wages higher than historic inflation, the nation’s largest business lobby said Monday.

Japan Business Federation President Masakazu Tokura delivers remarks in a video message during a forum in Tokyo on January 24, 2024, as Japan’s annual wage negotiations began the same day. (Kyodo)

The initial tally of salary increases showed an average increase of 5.58 percent, the highest since 1992 and equivalent to 19,480 yen ($125) per month, according to the Japan Business Federation, also known as Keidanren.

The encouraging results come after unions and management agreed on the need for wage increases in this year’s wage negotiations, in the face of last year’s pace of increase in consumer prices. fastest base in 41 years.

Keidanren surveyed the lobby’s 244 member companies across 22 industries and obtained substantial responses from 89 companies across 21 industries. The final count for this year is expected to be published between the end of July and the beginning of August.

The final total of salary increases last year was 3.99 percent.

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