Major Japanese firms offer biggest pay hikes in decades amid inflation

Major Japanese corporations including Nissan Motor Co. and Hitachi Ltd. on Wednesday agreed on their biggest pay raises in decades in annual wage negotiations after their labor unions requested wage hikes that match rising prices.

Nissan said it will increase monthly wages by 12,000 yen ($89) on average, the largest hike since fiscal 2004 when the current wage system was introduced. It will also offer annual bonuses worth 5.5 months’ salary as per its union’s request.

That follows the decision by Toyota Motor Corp., which has a strong influence in setting the direction of the country’s “shunto...