May 20 2024: Top Japanese companies have agreed to an average wage increase of 5.58% following annual labor negotiations that concluded in March, according to preliminary data from the Keidanren business lobby released on Monday. This marks the largest pay hike in 33 years.
The 2024 “shunto” spring wage talks saw an average pay rise surpassing last year’s finalized 3.99% increase, approaching the 5.6% rise recorded in 1991. The wage hike is driven by Japan’s chronic labor shortages and efforts to help employees cope with rising consumer prices.
The “shunto” or “spring labor offensive” is a notable feature of Japanese business culture, characterized by collaborative labor-management relations. This year, Japan’s largest union group, Rengo, reported that firms agreed to a 5.17% pay increase, the largest rise under comparable data since 2013.
Keidanren’s survey includes 244 large companies with 500 or more employees across 22 sectors. The preliminary data is based on responses from 89 companies in 16 sectors, with final data to be published in late July.
