62% of Japan firms raise base pay in FY 2023 amid inflation

A total of 62.1 percent of companies in Japan have raised or plan to raise base pay in fiscal 2023, up sharply from 38.7 percent the previous year as they seek to secure talent and match rising prices, a Finance Ministry survey showed.

The trend was notable particularly in the nonmanufacturing sector, with 56.0 percent saying they have or will raise wages, expanding from 28.8 percent the year before, the survey said. In the manufacturing sector, the figure was at 69.8 percent, up from 52.0 percent.

Hikes of 3 percent or more were recorded for 37.3 percent of the businesses that have raised bas...