Japan: Businesses agree to record wage increases

On March 15th, the Japan Federation of Trade Unions (Rengo) announced that Japan's largest companies had agreed to a 5.28% wage increase for their employees. This is the largest wage increase in the country in 33 years.

Analysts believe this move is one of the signals that companies are gradually moving away from the deflationary mindset that led to the country's period of economic stagnation – often referred to as the "lost decades." Due to deflation, for the past three decades, many Japanese companies only offered salary increases based on seniority, tied to the number of years an employee had worked at the company. The current wave of salary increases is much stronger, including increases regardless of seniority.

According to Kyodo, the decision to raise wages will likely lead the Bank of Japan to end its eight-year streak of negative interest rates at its meeting on March 18 and 19.

KHANH HUNG

Source: https://www.sggp.org.vn/nhat-ban-cac-doanh-nghiep-nhat-tri-tang-luong-ky-luc-post730964.html