Major Japan Firms Post Smallest Pay Hike in 12 Years

Economy

Tokyo, May 28 (Jiji Press)--Major Japanese companies have agreed to raise monthly salaries at the slowest pace in 12 years so far during this year's "shunto" spring labor-management talks, the Japan Business Federation, or Keidanren, said Friday.

Pay increases averaged 6,040 yen, or 1.82 pct, for unionized workers at 89 companies in 15 industries, according to an initial tally.

The pace of growth was the slowest since the 1.77 pct rise marked in 2009 in the aftermath of the global financial crisis. A figure below 2 pct was the first since the government started calling for pay hikes in 2014.

The result underscored companies' reluctance to raise salaries amid mounting uncertainties caused by the COVID-19 pandemic.

Keidanren, the biggest employers' group in Japan, plans to make public its final tally of the shunto results in July.

[Copyright The Jiji Press, Ltd.]

Jiji Press