The Keidanren (Japan Business Federation), a Japanese business organization, announced on the 20th that the average wage increase rate for large companies in this year's spring wage negotiations, known as Chuntu (春鬪), was initially calculated at 5.58%, according to reports by local public broadcaster NHK and Kyodo News.
According to Keidanren, which counts large companies as its member firms, this year's wage increase rate is 1.67 percentage points higher than last year, and recording a rate in the 5% range is the first time in 33 years since 1991 (5.6%) when compared to the final tally results.
Keidanren published the initial tally results based on a survey of the Chuntu settlement status of large companies with 500 or more employees, covering 89 companies. The final tally results, based on 244 member companies, are scheduled to be announced around July to August.
The initial tally showed that the average monthly wage increase amount, including base pay raises and regular promotions, was 19,480 yen (approximately 170,000 KRW), which is 6,370 yen (about 55,600 KRW) more than the initial tally last year.
This increase amount was the highest in 48 years since 1976, when the current tallying method was introduced, compared to final tally records.
The Japanese government has been urging companies to raise wages at a rate not falling behind inflation (price increases during economic stagnation) to escape deflation, and many companies, considering improved performance due to factors such as yen depreciation, decided on significant wage increases.
Keidanren issued a guideline in January before the start of this year's Chuntu, stating that wages should be raised by more than 4%.
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