Japanese Firms Offer Highest Pay Hike In 32 Years

A survey of major Japanese firms showed they offered their highest monthly wage increases in 32 years at over 5% in the spring wage negotiations, as many sought to respond to elevated prices while trying to avoid brain drains, the country's biggest business lobby said, Mainichi Japan reported.

The initial tally of wage increases showed an average 5.58% rise, the highest since comparable data became available in 1992 and equivalent to 19,480 yen ($125) per month.

The initial tally of wage increases showed an average 5.58% rise, the highest since comparable data became available in 1992 and equivalent to 19,480 yen ($125) per month, according to the Japan Business Federation, also known as Keidanren.

The government led by Prime Minister Fumio Kishida has been stepping up pressure on companies to offer pay hikes to bring a positive cycle of pay and price increases, as the country seeks to finally move out of its chronic deflation.

This year's initial results are significantly higher than last year's final tally, which showed a rise of 3.99%, or 13,362 yen, the biggest increases in 31 years at the time. If the 5 percent-hike level were maintained until the final tally, it will be the first time since 1991, when the figure stood at 5.6%.