Pay Hikes Average 1.78 Pct in 2021 “Shunto” in Japan

Economy

Tokyo, July 6 (Jiji Press)--Monthly pay increases achieved during this year’s “shunto” spring labor-management talks in Japan averaged 1.78 pct, or 5,180 yen, per employee, according to the Japanese Trade Union Confederation, or Rengo.

The combined average increase in base wages and regular pay was the slowest since the Japanese government began urging companies to raise wages in 2014, apparently reflecting an increasingly cautious stance adopted by many companies toward raising wages amid the coronavirus pandemic.

The average increase was down 0.12 percentage point, or 326 yen, from the 2020 shunto, Rengo’s final tally of wage hike offers for the 2021 shunto showed Monday.

Industries that suffered earnings drops due to the viral spread, such as manufacturers, transportation firms and hotel operators, saw limited pay hikes.

The average wage growth among large companies with labor union members of 1,000 or more went down 0.14 point to 1.78 pct, or 5,439 yen, while that among small companies, with less than 300 unionized employees, declined 0.08 point to 1.73 pct, or 4,288 yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press