Smaller Firms in Japan Raise Pay by 4.29 Pct in FY 2026

Tokyo, June 8 (Jiji Press)--Small and midsize companies in Japan raised monthly wages for full-time employees by 4.29 pct, or 12,036 yen, on average in April, the start of fiscal 2026, from a year before, a survey by the Japan Chamber of Commerce and Industry found Monday.

Wage growth expanded from 4.03 pct a year before, reflecting employers’ continued efforts to secure human resources amid rising inflation, a JCCI official said.

Some small and midsize companies revise wages in summer or autumn.

Wages rose 4.01 pct in April from March, a metric used to indicate how much small and midsize firms raised wages this spring. Larger companies raised wages by 5.46 pct this spring, according to the Japan Business Federation, or Keidanren.

More than 70 pct of small and midsize companies said they have raised or plan to raise wages in fiscal 2026. Over 20 pct said they were undecided, with some of them expressing concerns about soaring prices and shortages of materials due to a prolonged conflict in the Middle East.

[Copyright The Jiji Press, Ltd.]