Japanese companies agree to hike monthly base pay

Reuters TOKYO | Updated on January 24, 2018

Toyota joins Japan peers in agreeing to higher base-pay raises. File Photo

Japanese auto maker Toyota Motor Corp said on Wednesday it would raise the monthly base salary for workers by 4,000 yen ($33), its biggest hike in over a decade, joining other major domestic firms in agreeing to larger rises in annual wage talks.

The rise was short of union demands for 6,000 yen per month, but up from last year's 2,700 yen hike.

Electronics firm Panasonic Corp also agreed to increase the base salary for its employees by 3,000 yen a month, higher than last year's 2,000 yen hike, following annual wage negotiations with the electronics maker's labour union.

Earlier, auto maker Nissan Motor Co Ltd announced monthly base-pay rises of 5,000 yen respectively.

Many Japanese firms are due to announce the results of their wage talks on Wednesday. Higher wages are considered key to sustaining growth and decisively ending deflation in the world's No.3 economy.

Prime Minister Shinzo Abe's government has been urging Japanese companies, which are sitting on record levels of cash amid hefty profits, to do their part and lift workers' pay.

But real, inflation-adjusted wages fell 2.5 per cent in 2014, with households squeezed by higher consumers prices and an increase in the national sales tax rate.

Published on March 18, 2015

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