Major Japan Firms Promise 5.46 Pct Pay Hike in “Shunto”

Tokyo, May 27 (Jiji Press)–Major Japanese companies agreed to raise monthly pay by 5.46 pct, or 19,964 yen, on a weighted average basis in this year’s “shunto” spring labor-management negotiations, a first tally by the Japan Business Federation, or Keidanren, showed Wednesday. The result reflected soaring prices and labor shortages. The increase in terms of value was the highest since comparable data became available in 1976. Growth secured in the 2024 and 2025 shunto negotiations came to 19,480 yen and 19,342 yen, respectively. Meanwhile, the rate of increase topped 5 pct for the third consecutive year, following 5.58 pct in 2024 and 5.38 pct in 2025. “The strong momentum of wage increases is steadily on course to take root,” a Keidanren official said. The average pay hike came to 5.29 pct at manufacturers. Nonmanufacturers agreed to raise wages by 5.85 pct, the steepest since comparable data became available in 1997, amid a serious labor shortage. Growth came to 8.28 pct at the information and communications industry, 7.63 pct at the construction industry and 6.81 pct at the printing industry. With the labor-management talks on monthly wages conducted primarily based on earnings performances until the previous fiscal year, the ongoing Middle East turmoil, which began in late February, is believed to have had only a limited impact on the negotiations. Keidanren conducted the 2026 shunto survey for 248 companies with 500 or more employees in principle in 23 industries, with the first tally covering 103 companies from 18 sectors. The final tally results are expected to be released in late July. END [Copyright The Jiji Press, Ltd.]