Japanese Prime Minister Expects "Wage Increases Exceeding 3%" from Companies with Performance Recovery

Japanese Prime Minister Fumio Kishida
[Photo by Yonhap News]

[Asia Economy Reporter Joselgina] Japanese Prime Minister Fumio Kishida stated on the 26th that he expects companies whose performance has recovered to pre-COVID-19 levels to implement wage increases exceeding 3%.

According to Nihon Keizai Shimbun, ahead of the 2022 spring labor-management negotiations, Prime Minister Kishida, presiding over the 'Meeting for the Realization of New Capitalism,' mentioned specifically that "based on each company's payment capacity, the maximum possible wage increase is expected," referring to an increase exceeding 3%.

The meeting was attended by the heads of Japan's three major economic organizations, including Keidanren, the largest economic group in Japan.

However, Kishida did not demand a uniform wage increase. He clarified his position by stating, "There are industries still experiencing adverse effects, and differences in performance recovery are appearing," indicating that his expectations apply only to companies with improved performance.

Nihon Keizai Shimbun reported that "he did not use expressions such as requests or appeals," and that it was merely an expression of expectation.