Pay hikes at major Japanese firms average 2.54%: Keidanren

April 26, 2018

Tokyo- Major Japanese companies have agreed to raise monthly employee pay by 8,621 yen, or 2.54 percent, on average so far during this year's "shunto" spring labor-management negotiations, the Japan Business Federation, or Keidanren, said Wednesday.

The result of the federation's initial survey for the year represented the biggest increase for such a survey since 8,800 yen in 1994. The percentage growth is close to 2.59 percent in 2015, topping 2.19 percent in 2016 and 2.18 percent in 2017.

This is the fifth consecutive year that the government has asked companies to raise wages in labor-management negotiations.

Based on Prime Minister Shinzo Abe's call for raising wages by at least 3 percent, Keidanren has asked its member companies to reach the requested level.

The initial survey, based on answers from 68 companies, showed that the average hike came to 15,445 yen, or 2.92 percent, among construction companies, 9,866 yen, or 2.91 percent, among automakers, and 8,814 yen, or 2.27 percent, among wholesalers and retailers, including department stores and supermarkets.

Keidanren plans to release the final survey in June. Jiji Press