Abe hopes for 3% pay growth from productivity revolution

November 22, 2017

Tokyo- Japanese Prime Minister Shinzo Abe expressed his hope on Wednesday that the government's initiative to bring about a so-called productivity revolution will help realize 3 pct pay growth at companies.

"Pay hikes are a public demand for companies," Abe stressed at a plenary meeting of the House of Councillors, the upper chamber of parliament.

Abe suggested that the government is considering tax breaks for companies in exchange for pay hikes, as well as support measures for small businesses.

"We aim to direct record-high corporate earnings to pay increases and investment in business equipment," he said.

Abe made the remarks in response to questions from Natsuo Yamaguchi, leader of Komeito, the junior coalition partner of Abe's Liberal Democratic Party.

Yamaguchi also called for making child care and preschool education free of charge for every child aged 5 or under. Jiji Press