Japan employers agree with prime minister to raise wages

Robert Besser
23 Jan 2023, 19:30 GMT+10

More than half of major Japanese companies are planning to raise wages this year
Prime Minister Fumio Kishida has urged companies to increase their employees' wages, which have not kept up with the inflation rate
However, small and medium-sized firms that provide most jobs in Japan are less enthusiastic about Kishida's call

TOKYO, Japan: More than half of major Japanese companies are planning to raise wages this year, after Prime Minister Fumio Kishida encouraged them to do so in order to help workers cope with rising retail prices, according to Reuters.

Kishida has urged companies to increase their employees' wages, which have not kept up with the inflation rate, described as the highest in 40 years.

Last week, Uniqlo operator Fast Retailing Co said it would raise wages by as much as 40 percent.

Before spring's "shunto" labor negotiations, managers at 24 percent of the companies polled said they are considering wide-ranging salary increases, along with scheduled wage increases, while another 29 percent said they would carry out regular pay increases only, while 38 percent were undecided.

"Prime Minister Kishida has been saying raise wages, raise wages, but the decision to hike pay is not done on the words of a prime minister or president. Rather, it's because a company needs better human resources to achieve its growth potential," said Masayuki Kubota, chief strategist at Rakuten Securities, as quoted by Reuters.

However, small and medium-sized firms that provide most jobs in Japan are less enthusiastic about Kishida's call.

Among the 495 firms polled in Reuters October survey, 54 percent of companies supported the defense spending plan, but only 29 percent backed the increase in corporate tax rates, while 81 percent said they agreed with a substantial increase in defense spending, but only 20 percent said corporate taxes should be raised to pay for it.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Asia Pacific Star.

More Information

25 ℃

Mostly Cloudy in Seletar

Asia

Section

Czech parliament speaks repeats support for Taiwan

PRAGUE, Czech Republic: Ahead of her visit to Taipei, Marketa Pekarova Adamova, Speaker of the Czech Lower House, reiterated to ...

Washington ends export licenses for supplying China's Huawei

WASHINGTON D.C.: The Biden administration has stopped issuing export licenses to US companies seeking to ship most items to China's ...

Gen. Hlaing tells the NDSC military needs more time to prepare for a 'free' poll

NAYPYITAW, Myanmar - According to an announcement broadcast by state-run media on Wednesday evening, members of Myanmar's National Defence and ...

Imran doesn't recognize "imported govt" as PM Sharif invites him to APC

LAHORE, Pakistan - Former Prime Minister Imran Khan questioned Prime Minister Shehbaz Sharif's "shamelessness" in a social media post criticizing ...

NATO, Japan look to closer tires due to China, Russia concerns

TOKYO, Japan: In light of a tense security environment following Russia's invasion of Ukraine and Moscow's growing military cooperation with ...

China to allow return of Japanese tourists following retaliatory ban

TOKYO, Japan: In a statement posted on the website of the Chinese Embassy in Tokyo, Beijing announced that it will ...

Business

Section