Economy Keidanren: bigger wage hikes coming this year

[thomas]

At a New Year's meeting on Friday by three leading business organizations, Japanese business leaders revealed plans for salary increases that would exceed those of 2023, indicating a positive outlook for a crucial aspect of the drive to achieve stable economic growth. The yearly event held by the Japan Business Federation, the Japan Chamber of Commerce and Industry, and the Japan Association of Corporate Executives focused mainly on wages.

Itochu CEO Masahiro Okafuji said the trading house is negotiating with labour with an eye toward wage hikes averaging 6% across all employees and a 50,000 JPY (USD 347) boost to starting monthly salaries. CEO Masahiro Kihara said that Mizuho Financial Group is looking at an increase of around 7%, though it will depend on inflation and earnings. "We're aiming for more than 5%, including a base pay raise," said Sadanobu Takemasu, CEO of convenience store operator Lawson. That would top the 4.9% increase in 2023. Masakazu Tokura, chairman of the Japan Business Federation -- also known as Keidanren -- emphasized the need to keep pace. "We must do this not only in 2024 but also in 2025," he said.

Paywall alert:

Japan bosses say bigger wage hikes coming this year

Business groups discuss labor shortage and global risks at New Year's meeting

asia.nikkei.com

This came in reaction to the government's request to raise wages at a faster pace in 2024:

Kishida asks firms to achieve larger pay hikes in 2024 than this year

Kishida also underscored the need to support people's disposable incomes, with a scheduled tax cut to be implemented next year.

www.japantimes.co.jp