Major Japan Firms Offer Employees 3.91% Pay Hike Interest, Highest In 31 Years

Major Japanese companies raised wages by an average 3.91 percent in this year's spring wage talks, marking the biggest increase in 31 years in the face of repeated calls by Prime Minister Fumio Kishida for pay rises to cope with inflation, Japan's biggest business lobby said, Kyodo News reported.

Photo Insert: The average wage increase was equivalent to 13,110 yen ($95) per month, up 5,680 yen from the previous year, according to preliminary data from the Japan Business Federation, also known as Keidanren.

The average wage increase was equivalent to 13,110 yen ($95) per month, up 5,680 yen from the previous year, according to preliminary data from the Japan Business Federation, also known as Keidanren.

The increase was larger than 2.27 percent the year earlier and the sharpest since 1992, when the average wage grew by 4.78 percent.

Japan has been grappling with soaring prices due largely to rising import costs following a weak yen and Russia's war on Ukraine, Mainichi Shimbun also reported.

Consumer inflation in Japan accelerated to 3.0 percent in fiscal 2022 through March, the fastest pace in 41 years, according to government data.

As prices of goods ranging from food to gasoline surge, Kishida has repeatedly asked businesses to raise wages at a pace that exceeds the inflation rate and helps sustain the economy.

Companies are also under pressure to improve their wage levels to acquire global talent. Japan's wages are the lowest among the Group of Seven industrialized nations, according to data compiled by the Organization for Economic Cooperation and Development.

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