Japan’s Top Firms Agree on 3.8% Wage Rises, Highest in Nearly 30 Years

Japanese corporations have agreed to raise wages by an average of 3.8% for the next fiscal year, the trade union confederation said on Friday, the largest increase in about three decades.

According to Japan’s trade union confederation Rengo, a preliminary poll of 805 affiliated unions found an average monthly raise of 11,844 yen ($88.98).

In response to Prime Minister Fumio Kishida’s call for higher wages to offset growing costs of living, major Japanese corporations on Wednesday concluded their annual labor talks with the largest pay raises in a quarter century.

Rengo authorities noted that this is the first time the average salary has increased by more than 3% since 1994.