Major Japanese Firms Raise Wages by Nearly 4% in 2023

According to a survey released by the Japan Business Federation (Keidanren), the 2023 spring labor-management negotiations at major companies yielded an average year-on-year wage rise (including increases in base salaries) of 3.91%, or ¥13,110 per month. This was far higher than the previous year’s increase of 2.27% or ¥7,430. The increase in 2023 marks the second consecutive year-on-year increase, and the first time for the increase to surpass 3.5% since the 3.83% increase in 1993.

Keidanren surveyed 241 major companies in 21 industries. The results were based on the average wage increase among the 92 Keidanren members that responded to the survey.

Among the 15 industries of the companies responding to the survey, 12 had wage growth rates exceeding 3%. The highest growth rate was 6.06% for shipbuilding, followed by 5.01% for machinery and metalworking, and 4.58% for textiles. The rate of the wage increase in the steel industry was lower than that of the previous year, but this seems to have been due to its biennial labor-management bargaining system.

(Originally published in Japanese. Banner photo © Pixta.)