Japanese firms agree to 5.4% pay raise, largest in 34 years

Published 21/03/2025, 11:10
© Reuters.

Investing.com -- Japanese companies have committed to a 5.4% wage increase this year, according to the latest data from Rengo, the country’s largest union umbrella group.

The figure, released on Friday, is slightly less than the initial reading of 5.46% disclosed last week, but is still on track to be the highest wage increase in 34 years.

Rengo, which boasts a membership of 7 million, periodically releases the outcomes of the heavily monitored wage negotiations. Blue-chip companies typically conclude their discussions in mid-March.

Final figures are often less than early estimates as agreements between smaller firms and their unions, which are included from April to June, are taken into account.

Rengo’s president, Tomoko Yoshino, noted during a press conference that the agreed wage increases have been substantial. She expressed a desire to extend this trend to smaller businesses.

This year’s wage increase compares with last year’s average hike of 5.25% in the second tally. This figure was subsequently adjusted downward in several stages to the final average of 5.1% announced in July.

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