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View All NewsJapan – Workers eye massive pay hike in closely watched union talks (Reuters)
Japan's big companies are expected to deliver the largest pay rise in 26 years in next week's ‘shunto’ (spring wage campaign) negotiations, reports Reuters. However, the expected average salary hike of around 3% will likely include just a 1% increase in base pay, casting doubt on whether Japan can achieve the kind of sustained wage gains the central bank sees as key to stably hitting its 2% inflation target.
Big firms will offer, on average, pay rises of 2.85% for the financial year beginning in April, which would be the fastest pace of increase since 1997, a survey by the Japan Economic Research Center (JERC) showed in January. The gain will reportedly comprise a 1.08% rise in base pay and a 1.78% increase in additional salary based on seniority.