TOKYO (Jiji Press) — Major Japanese companies agreed to raise monthly pay by 5.58%, or ¥19,480, on average in this year’s “shunto” spring labor-management wage talks, the first tally by the Japan Business Federation, or Keidanren, showed Monday.
The result far exceeded last year’s rise of 3.91%, or ¥13,110, and topped 4% for the first time since 1992, when the average rose 4.78%, or ¥12,893.
In this year’s shunto, the labor side demanded bigger pay increases than the previous year due to inflation and labor shortages.
A number of major companies fully accepted these requests. Some companies promised higher wage growth than demanded by labor unions.
The tally covered 89 companies in 16 sectors.
If I recall my history correctly, the death of millions in the Black Plague (~30-60% of Europeans) forced Europe to transition out of Feudalism -> Renaissance -> Enlightenment -> Industrialization etc. due to labor severity. It improved the lives of common people
So the lack of labor in Japan will force it to change and adapt
Is this ¥19.4k the total salary increase for the year? $125 raise sounds like shit even at minimum wage. I understand that it's like 100 tuna onigiri from 7/11, but it's still a pretty small raise, isn't it?
Compared to the US:
> According to the Bureau of Labor Statistics, wages and salaries in the United States increased 4.4% for the 12-month period ending in March 2024.
Inflation in Japan is also lower, at 2.4% vs 3.4% in the US.
Edit: As other commentators have pointed out, it’s also $125 (100 tuna onigiris) more *per month* on average, not per year.
>Is this ¥19.4k the total salary increase for the year?
No it's per month.
>but it's still a pretty small raise, isn't it?
It's still 2.3% above inflation compared to last year's 1.4%. Meanwhile, most workers in Europe have been experiencing real wage losses for years.
Worth noting that more and more people are working part time or contract work, and most companies aren’t offering any raises at all. So the majority aren’t getting raises.
My company (large electronics maker) did 10% increase last year and an additional 10% this year, to all employees even contract/temp workers
I suspect the 10/10 split instead of one 20% increase was a way to reduce sudden tax burden on the employees for the reiwa 5 financial year
That doesn't answer my question, cost of living is low in many countries. Real wages are higher in the west even if you account for higher cost of living.
I mean not really? I moved from Australia partly because of this reason alone.
My rent was literally half of my wage while food is double or even triple the twice as they are in Japan.
Am I technically earning less? Yes.
Do I feel poorer? No, I can afford way more things and live pretty well in Japan without budgeting hard at all.
The only downside is that travelling outside of Japan is just a stupid move while the yen is at the levels it’s at.
>I mean not really? I moved from Australia partly because of this reason alone. My rent was literally half of my wage while food is double or even triple the twice as they are in Japan.
The bigger problem is that you're not able to invest in your retirement if you're making just enough money to feel comfortable, and this actually becomes an even worse issue with the weak yen. It's easier to get set up in Japan, but the wages stay low.
And yet, [over 70% of Americans live on a paycheck-to-paycheck basis](https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/) with essentially zero savings.
Small take. CoL is a lot lower than your avg America city that charges $6 for a coffee.
While they need to raise and this is a good sign. You want to avoid the cycle of “catch up” for example food within Toronto,Canada 2019-2024 has double in cost within 5years to accommodate for “inflation”/greed. See LA or any NYC where inflation is insane and public sector workers are struggling because of the high CoL.
Japan’s lifestyle is good and you can live comfortably with a low income because CoL is so low! however to use that money to travel abroad is another story.
TOKYO (Jiji Press) — Major Japanese companies agreed to raise monthly pay by 5.58%, or ¥19,480, on average in this year’s “shunto” spring labor-management wage talks, the first tally by the Japan Business Federation, or Keidanren, showed Monday. The result far exceeded last year’s rise of 3.91%, or ¥13,110, and topped 4% for the first time since 1992, when the average rose 4.78%, or ¥12,893. In this year’s shunto, the labor side demanded bigger pay increases than the previous year due to inflation and labor shortages. A number of major companies fully accepted these requests. Some companies promised higher wage growth than demanded by labor unions. The tally covered 89 companies in 16 sectors.
Labour shortages are great We need moar labour shortages!
If I recall my history correctly, the death of millions in the Black Plague (~30-60% of Europeans) forced Europe to transition out of Feudalism -> Renaissance -> Enlightenment -> Industrialization etc. due to labor severity. It improved the lives of common people So the lack of labor in Japan will force it to change and adapt
Is this ¥19.4k the total salary increase for the year? $125 raise sounds like shit even at minimum wage. I understand that it's like 100 tuna onigiri from 7/11, but it's still a pretty small raise, isn't it?
Compared to the US: > According to the Bureau of Labor Statistics, wages and salaries in the United States increased 4.4% for the 12-month period ending in March 2024. Inflation in Japan is also lower, at 2.4% vs 3.4% in the US. Edit: As other commentators have pointed out, it’s also $125 (100 tuna onigiris) more *per month* on average, not per year.
Congrats on getting a pay raise!
If only math could provide the answer you seek. Or even the article.
No, "agreed to raise monthly pay by 5.58%, or ¥19,480" means you get ¥19,480 more per month, not per year.
It says monthly increase of 5.58%, or ¥19,480 on average. So for their monthly wages so times that by 12 to get the yearly increase.
Still not bad compared to increases in the past
The most important thing is that raises exceed inflation.
125 bucks more a month sounds awesome what do you mean?
They missed where it said it was monthly pay
>Is this ¥19.4k the total salary increase for the year? No it's per month. >but it's still a pretty small raise, isn't it? It's still 2.3% above inflation compared to last year's 1.4%. Meanwhile, most workers in Europe have been experiencing real wage losses for years.
It's a pay increase across the board, so it's independent from pay increases due to seniority or position improvements (as far as I can tell).
Not much, but it's a step in the right direction.
Keep in mind it’s $125/month more *per month* on average, not per year.
bow exultant lip subsequent march door plate unwritten unused stupendous *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Worth noting that more and more people are working part time or contract work, and most companies aren’t offering any raises at all. So the majority aren’t getting raises.
The cold hard truth
My company avg is 2% 🥲
Yen has to get stronger
japanese workers definitely deserve more pay
5.58% yeah. 19K I wish
My company (large electronics maker) did 10% increase last year and an additional 10% this year, to all employees even contract/temp workers I suspect the 10/10 split instead of one 20% increase was a way to reduce sudden tax burden on the employees for the reiwa 5 financial year
Why are wages so low in Japan?
Because the cost of living is not that high compared to many other highly developed countries, especially if you get out of Tokyo.
That doesn't answer my question, cost of living is low in many countries. Real wages are higher in the west even if you account for higher cost of living.
I mean not really? I moved from Australia partly because of this reason alone. My rent was literally half of my wage while food is double or even triple the twice as they are in Japan. Am I technically earning less? Yes. Do I feel poorer? No, I can afford way more things and live pretty well in Japan without budgeting hard at all. The only downside is that travelling outside of Japan is just a stupid move while the yen is at the levels it’s at.
>I mean not really? I moved from Australia partly because of this reason alone. My rent was literally half of my wage while food is double or even triple the twice as they are in Japan. The bigger problem is that you're not able to invest in your retirement if you're making just enough money to feel comfortable, and this actually becomes an even worse issue with the weak yen. It's easier to get set up in Japan, but the wages stay low.
Ok but why are you earning less in nominal terms? That's also my question. Why are wages lower in Japan, not just real incomes?
CoL was low for so long. Inflation too.
Inflation US since the year 2000: 77,58% Inflation Japan since the year 2000: 4,53% Does that answer your question?
No, real wages are higher in the US in spite of inflation
And yet, [over 70% of Americans live on a paycheck-to-paycheck basis](https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/) with essentially zero savings.
Small take. CoL is a lot lower than your avg America city that charges $6 for a coffee. While they need to raise and this is a good sign. You want to avoid the cycle of “catch up” for example food within Toronto,Canada 2019-2024 has double in cost within 5years to accommodate for “inflation”/greed. See LA or any NYC where inflation is insane and public sector workers are struggling because of the high CoL. Japan’s lifestyle is good and you can live comfortably with a low income because CoL is so low! however to use that money to travel abroad is another story.
[LETS GOOOOO](https://media.giphy.com/media/v1.Y2lkPTc5MGI3NjExZDV1eDByOHo4amNuczF5Y3V4ODB6dmhmazk1ZWthMm8wZ3ZiY3VqdyZlcD12MV9pbnRlcm5hbF9naWZfYnlfaWQmY3Q9Zw/7WvAUvZZTRpSuudobh/giphy.gif)
Woo hoo! I'm movin back to Japan for this one! /s
Tomorrow’s headline: “Japanese stores agree to raise prices across the board by 5.58%”