Major Japanese firms offer biggest pay hikes in decades

¥12,000 yen on average.

Is this a pay raise?

Looks like a tease of a pay raise.

¥12,000 yen on average.

Is this a pay raise?

Looks like a tease of a pay raise.

https://tenor.com/es/view/zo-crybaby-funny-selfie-gif-14225810

LOL !!..

In a government meeting with representatives from the business community and the labor unions held for the first time in eight years, Kishida expressed hope that wage increases at major corporations trickle down to smaller companies.

Unlikely, given how many of them are zombie companies that can only stay in business because of subsidies and lenient loan conditions arranged by LDP good ol' boys.

Major Japanese firms offer biggest pay hikes in decades

Only big companies can afford that, small and medium companies just end up taking left over from people that being rejected by big companies.

Glad to read this, well overdue, good for everyone.

¥12,000 yen on average.

Anything is better than NOTHING for now.

In a government meeting with representatives from the business community and the labor unions held for the first time in eight years, Kishida expressed hope that wage increases at major corporations trickle down to smaller companies.

Trickle Down 2.0 ; New Capitalist edition.

Only seishain will get the hike.Arubaito,Haken Shain,Keiyaku shain et al get nothing and that's where majority fall.Ask your agency.

"The average wage in Japan for 2021 stood at $39,711, about half the level in the United States, which marked the highest compensation. The figure in Japan was also the lowest among other Group of Seven industrialized nations."

... really. Amazing.

Saisuke Sakai, senior economist at Mizuho Research & Technologies Ltd.

"But it's still not enough to compensate for rising consumer prices" as the pace of increase in base pay needs to catch up with that of prices to generate any significant impact on the economy, he added.

This economist is not the sharpest pen in the box. Wage increases NEVER compensate for rising prices, it never has and never will. In inflation worker always loses.

¥12,000 yen on average.

Multiply that by 12, and then multiply that 12,000 by 5.5 , which comes out to, based solely on the 12,000 here, to ￥144,00 + ￥66,000 =￥210,000

However this is just for seishain, which is a tiny portion of their workforce.

Beef bowl restaurant chain operator Zensho Holdings Co agreed to give an average increase in its base pay of 7.7 percent, or 26,718 yen, a record hike for the company.

This is a joke, as the overwhelming majority of their employees are part-time workers who are earning minimum wage.

What WILL be interesting to see is if the largest employer in Japan, with over 2.8 MILLION workers, will institute a wage increase for it's employees! (Doubt it!)

Japan’s GDP hasn’t grown at all in the last two decades. No wonder the average wage is half that of the US, whose GDP has grown more than twofold in the same period.

They have used Nissan as am example. That is less 100 Yen an hour. Like how they use big number to hide the fact. 100 yen an hour, I reaching for a bucket to empty my disgust into. 100 yen an hour, what a utter complete disrespect for you workers that have provides enormous margins for the company.

Could be an early step in the "virtuous" wage-inflation cycle that everyone has been waiting for.

Only seishain will get the hike.Arubaito,Haken Shain,Keiyaku shain et al get nothing and that's where majority fall.Ask your agency.

keiyaku shain and baito can have a direct contract with the company, and in that case can also get a wage increase depending on the contract.

Yes, better than a minus or nothing, but it’s of course only an insignificant joke, because only the few employees of those big players benefit. Most people aren’t employed there or don’t even have a job and therefore income or no pay hikes at all, like children, seniors, self-employed people, employees of small and medium companies altogether for example. If you then distribute the higher amounts onto all averaged, it’s by far not even balancing yearlong corona losses and current hyper inflation. Anyway, thank you very much for that little nothing as it also could have become even worse.

Smokescreen.

Money is relative.

You need to know how much management's salaries are rising. I bet they're going up a hell of a lot more than 200000yen a year.

They have used Nissan as am example. That is less 100 Yen an hour.

Look at the total amount, it's over ￥200,000 per year, not a hell of a lot, but major for here. Seishain are not paid by the hour, as they are salaried employees.

Tiny rise tbh

Where and how are you saying 200,000 a year, You must be using company maths. 12 x 12,000 is not 200,000. it is 144,000. you maths is out by 25% Anyway it works out on average at less then 100 yen hour. With the on coming fuel hike soon to 180 yen per litre. That 4000 Yen would not cover that increase.

According to data compiled by the Organization for Economic Cooperation and Development, the average wage in Japan rose 6.3 percent in 2021 from 1990. That compares with more than 50 percent increases in the United States and Britain during the same period.

Yes very true, when I arrived 30 plus years ago Japan pay was high and everything else also.

So the pay in Canada like the UK and USA also 50% higher than 1990 so is everything else.

Last time back home the idea eating out was frightening even McDonald's was more expensive, a ramen forget it a bad cheap one is $15 Cnd As is pretty much everything else.

The minimum wage has gone from around $8 Cnd to $15 so even the cheapest food reflects that increase.

Rent in most major cities in the UK, USA and Canada are so high even Tokyo is more affordable, buying a house.

The average home price in Tokyo is ¥490,000/ 100~120 square metre house.

The average house same size in Toronto over ¥ 100,000,000 a similar condo in Toronto ¥ 70,000,000 .

NY city is even More a small condo will cost you over $ 1 million US forget property in the city.

London UK a condominium like the one in Tokyo will be at least ¥ 80,000,000 a house far far more.

So with property prices and higher interest rates in comparable major US Canada and UK cities the rents, cost of living and everything else also increases.

So pay has gone up 50% in these places,

What about buying power?

Well what $1 could buy in 1990 will now cost you $2.24 in 2023 an increase of 124%.

I’ve raised my workers too

they wanted ¥100.- per hour but agreed on ¥50.-per hour which comes out to ¥110,000.- per annum

¥50.-per hour sounds like peanuts but if it’s calculated yearly then it comes out to be a high amount

@jefflee

Not sure that the circle is that virtuous when real wages (wages minus inflation) are falling as mentioned in the article.Actually it is worse than when wages were stable and inflation stable.

Where and how are you saying 200,000 a year, You must be using company maths. 12 x 12,000 is not 200,000. it is 144,000. you maths is out by 25%

Evidently you dont understand the "math". A ￥12,000 per month raise, as noted in the article is definitely ￥144,000, on average, per the article.

Also, if you have any idea how bonuses are added up, they take the base pay, and depending upon the company, other numbers are included, but basically you can calculate the base pay X's 5.5, which is spread over, typically, 2 bonuses payments per year, for a rough number here, of an additional ￥66,000.

It's not "company" math, it's just basic math, and easy to figure out!

However this is just for seishain, which is a tiny portion of their workforce.

I wish the vast majority of you would spend more time researching before you comment. NHK reported yesterday that even contract employees at these large firms were getting pay raises. And Aeon, one of the largest companies with part time employees, was giving a pay raise to all their employees. Read that again, ALL THEIR EMPLOYEES.

capitalism as its best.

if considers food price hike and living costs hike 12000 jpy is drop in the ocean.

The people that gets bonus are management, not minimum wage earner which is 90% of the company. Yes you do use company maths. How easy is it for the managers and management to forget the back bone of the company, the workers. Management and us the working class will never see the real truth because of company deceit. Yes like stated Company maths.

A joke pay rise...

If salary levels don’t increase in line with inflation then people in Japan are becoming poorer.

Saving for retirement becomes impossible

Being a poor single 30 year is very different than being a poor 65 year old-think about it

¥12,000 yen on average.

That's chump change. You can do better than that, Japan!

I am not sure what all those voting down my comment and that of Bob

Today 09:07 am JST?

We point out facts.

So according to the article the USA and UK increased salaries by 50% since 1990 but FACTS are the purchasing power in those places has dropped by more.

So if you made $20,000 a year in the USA in 1990 you in theory now make +50% so $30,000.

But what cost you $200 to buy in 1990 will now cost you $448

In 1990 the average car in the USA was $16,000 today the average car cost $46,000 that is nearly a 200% more!

My rent ( before purchasing my house) in Tokyo didn't increase for 20 years while in that same time back home my Brother's rent increase 100% in that same period and that was with rent control.

Anyone here in 1990s will tell you things are far more affordable despite the salary freeze

Also, if you have any idea how bonuses are added up, they take the base pay, and depending upon the company, other numbers are included, but basically you can calculate the base pay X's 5.5, which is spread over, typically, 2 bonuses payments per year, for a rough number here, of an additional ￥66,000.

That is, IF you are lucky to GET a bonus, if any.

The average home price in Tokyo is ¥490,000/ 100~120 square metre house.

Where can I buy one for that price?

wallaceToday  09:57 am JST

Where can I buy one for that price?

This sounds obvious.

Those are everywhere, if you understand the landscape of Tokyo.

Too little, too late for most people. Young people are still leaving en masse for other nations, and not going to come back to live and work, only to visit and cash in on the weak yen if the BOJ has its way and keeps it as such. the CBC reported recently that up to 14,000 women emigrated from Japan to Canada because of gender inequality and poor marriage prospects, as well as the economy. And that's just Canada!

wallace

Today 09:57 am JST

The average home price in Tokyo is ¥490,000/ 100~120 square metre house.

> Where can I buy one for that price

Sorry you are correct it should read ¥49,000,000 missed a zero.

Happy?

All these companies add up don't represent a peanut of the whole working population.

the CBC reported recently that up to 14,000 women emigrated from Japan to Canada because of gender inequality and poor marriage prospects, as well as the economy. And that's just Canada!

Yeah CBC great propaganda source, most will return as they have in the past, because Canada isn't the paradise they think as young women.

Once they realize they can't ever buy a house unless they have dual income at both high salaries.

When they realize the cost of living is far higher than the exact salary they are making.

If you can find a $500,000 Cnd dollar house in Toronto the yearly property tax is $3,000 Cnd up a year in the lowest Toronto region

Now in Tokyo where I am that same $ 500,000 Cnd (say ¥50 million) the property tax is around $800 (around ¥ 80,000) a year

This is all in top of mortgage payment.

Seems idealic at first but in the long term it's no better and might even be a little bit worse than living in Japan

If you work at one of these big companies and live in a big city, I suppose this will be break even for many. You get 15000 a month extra, 12,000 after taxes and shakai hoken, and that'll just about cover the rise in your electricity, gas, and food bills. I can't say I know much about the cost of other things.

If you live somewhere cold and heat your house more, are rural and have to drive cars, or have a large family who eat more, it won't be enough. It also won't be enough if you want to build a house, because the price of newbuilds has gone up about 20% since 2020. That's even if the value of the land you're building on has gone down. It's big ticket things like this that matter, not the price of Umaibo snacks or Black Thunder chocolates that the press are always talking about.

¥12,000/¥144,000 pa, before tax and deductions.

¥12,000 yen on average.

Is this a pay raise?

Looks like a tease of a pay raise.

It did say the ¥12,000 yen increase was a monthly increase.

That's decent. But that was for the major corporation workers.

The usual pay rise was 1000 yen so anything over that 10000 looks big hike but not compared to the recent price rise!

In the same time I can see the way things work in Japan are different with companies announcing they will rise their prices in advance and doing so moderately.

It's amazing that once Japan had an image for very expensive place but comparing now just about anything it's on the affordable side.

Basically I agree with @Antiquesaving but some figures are untrue. The cheapest house 80-90sqm you can find in Yokohama suburbs is around 40-45 milion yen (actual living space 60sqm and land 50-60sqm). Tokyo starts from 60 mil. and up!

Which do you prefer?

Japan the wages have barely gone up 6.3% since 1990 the cost of living has increased by about 5% (deflation after the bubble).

So your purchasing power is about the same or due to present inflation a bit lower.

Or do you prefer

The USA.

Wages have gone up 50% cost of living has gone up 124% that means everything you buy now cost more than twice what it did in 1990 but your income isn't double what it was in 1990.

Seems we are better off in Japan

Basically I agree with @Antiquesaving but some figures are untrue. The cheapest house 80-90sqm you can find in Yokohama suburbs is around 40-45 milion yen (actual living space 60sqm and land 50-60sqm). Tokyo starts from 60 mil. and up!

Sorry I can assure you I didn't pay ¥60 million for my place 120 m2. 3 floor house not even close I wouldn't have qualified for a mortgage that high (land 70m2 purchased 3 years ago).

Just down the street 3 new houses built on a previous land that had a single large house and large land.

Each house owns it's own property, each is 3 floors between 115 and 130m2 living space each has parking 1 car, 2 car and 3 cars respectively.

They range from ¥55 million to ¥ 65 million all included

I live in 23 ward Tokyo 6 minutes from a metro station, 7 minutes from a monorail 7 minutes from another train line and 12 to 15 minutes walk to a yamanote line station.

My friend just bought a place near Yokohama, large land single floor 150 m2 living space, ¥20 million 15 years old, he put in ¥ 6.5 million in renovations beautiful place nice garden BBQ space 10 minutes walk to the station.

Plenty available like that.

The people that gets bonus are management, not minimum wage earner which is 90% of the company.

Wrong! In these companies here, ALL seishain, and not just management receive bonuses.

Dont know what country are you living in, certainly isnt Japan as here in Japan, the proverbial "salaryman" get's a bonus payment, typically 2 times a year. Management is not the only people who get them, it is a FACT and not conjecture.

Depending upon the company, it is separated into two payments, of a total of 5.5 "months" of your basic salary without any extra benefits. Also depending upon the company the payment is typically larger in winter than summer.

So the summer bonus would be 2.5 months of salary, and winter 3.0, total 5.5

12,000/¥144,000 pa, before tax and deductions.

You missed adding in the increase for the bonuses so it is actually higher

Each house owns it's own property, each is 3 floors between 115 and 130m2 living space each has parking 1 car, 2 car and 3 cars respectively.

They range from ¥55 million to ¥ 65 million all included

Tateuri houses like this will have the lowest build quality among newbuilds. Every possible corner will be cut.

If you want a good house, buy land and employ the builder yourself.

Tateuri houses like this will have the lowest build quality among newbuilds. Every possible corner will be cut.

Have you seen the junk being built in North America. Most with a few exceptions have no earthquake or hurricane / typhoon standards.

I will bet these 3 houses will withstand an earthquake better than move modern construction in north america.

Yubaru

   12,000/¥144,000 pa, before tax and deductions.

> You missed adding in the increase for the bonuses so it is actually higher

Yes but I don't know the bonuses which vary from 0.5-1.5 monthly salary.

If you want a good house, buy land and employ the builder yourself.

I have built 3 Houses myself and brothers and there in nothing enjoyable.

It is stressful, expensive problematic, needs inspections permits subcontractors you need to keep a close eye on, etc..

Been there done that,

No thanks.

Bought mine used, and a reputable professional company do the roof and exterior walls and I will renovate the interior slowly ( already half done) some by professionals like the bathrooms, plumbing and electricity, the rest the family like removing wallpaper skimming the walls and painting (hate wallpaper can't wash) floors real wood I already sanded and refinished.

Anyway as I get older with health issues, 3 minute walk to the supermarket, 6 to the metro station everything with a short distance including medical, I prefer living in central Tokyo.

Yes but I don't know the bonuses which vary from 0.5-1.5 monthly salary.

In the article, it stated that bonuses offered would be 5.5, which is 5.5 months of salary, paid out total, in two payments.

Which is huge, considering that number is well over 1/3 of their annual pay, without a bonus that is.

So in effect, someone whose base pay, for discussion purposes only here, is ￥300,000 per month, is ￥1,650,000 yen, paid in 2 installments, summer and winter.

Their base salary alone is ￥3,600,000, before taxes of course, but still that payment is over 50% of their annual pay, in comparison to someone who doesnt get the bonus but has the same base salary.

@rightous

orked in a large JP company for many years and the young employees are quite hard working and productive but it seems once someone hits 50 it is time to lay flat and get paid well. I am not saying mass firings but maybe some way to lower compensation of these less productive ones would be helpful.

the 3 Japanese mega banks actually cut salaries progressively from around 50. By the time employees reach 60 their salary is 30 % or more lower than at their peak. From 60 they can continue to work until 65 if their wish so but with one year contract and the salary is getting cut a bit.

This does not apply to executives who continue to be promoted and see their salary go up.

Yuraru. You quote the salaryman yearly earning not at hourly rate. You receive a yearly contract with condition like bonuses and under these condition you can negotiate a pay rise at any time. Where a wage earner can not. He has to except the hourly rate with no bonus attached which is set by a Authotity. If you are salary man in Japan, you are on a contract, Your not a wage earner. A wage earner is the bloke on the workshop floor not a Managerial offices were adim take place (contacted salary) big different. Those office workers are on a yearly contract, the factory floor worker is pay per hour. Hence the minimum wage is set at per hour not yearly. They have different working condition to the salary man. Like I stated Management and the hourly wage earner will never agree because of company deceit which you have just presented above and try to pass off as legitimate. Can you quote the hourly for a standard salaryman and what independent Authority set it. No you can't because they sign an individual yearly contract that you and your employer agree on. And that is only small percent of Japan workforce. the others 90% are made up of tradesman self employed, professionals and the wage earner and minimum wage earner. So your example talk about a small percent of the work force.

The post photo is from Sept 2022.

That average wage must be for TEMPORARY WORKERS IN JAPAN. People in the US doing nothing and on welfare get that much!

The average wage in Japan for 2021 stood at $39,711, about half the level in the United States, which marked the highest compensation. The figure in Japan was also the lowest among other Group of Seven industrialized nations.

It certainly isn’t the English teaching industry.

I was earning way more back in 1990 than they are offering these days