Tokyo
In a significant development, companies in Japan are set to raise the average monthly pay per employee by a record 3.2%, equivalent to 9,437 yen ($64), in 2023, as revealed by an annual government survey. This substantial increase, surpassing the previous year’s uptick of 1.9% (5,534 yen), marks the most significant rise since the inception of comparative figures in 1999, according to the Ministry of Health, Labour, and Welfare. The survey, conducted from July 20 to August 10, targeted companies with 100 or more employees, with responses collected from 1,901 firms. An impressive 89.1% of companies either raised average regular wages or have plans to do so this year, reaching the highest percentage since 2019, as indicated by the survey results. The construction sector took the lead in implementing these changes, closely followed by manufacturing. Conversely, the transportation and postal industries, along with the accommodation and restaurant sectors, showed the smallest number of companies opting to raise pay. The driving factors behind this surge in wages include high prices and labor shortages, according to a Ministry official.
