TOKYO : More than half of Japanese companies are planning to raise wages this year, according to a Reuters monthly poll, meeting a key request from Prime Minister Fumio Kishida to help workers cope with surging consumer prices.Kishida's administration has repeatedly urged companies to make maximum efforts
TOKYO : More than half of Japanese companies are planning to raise wages this year, according to a Reuters monthly poll, meeting a key request from Prime Minister Fumio Kishida to help workers cope with surging consumer prices.
"Prime Minister Kishida has been saying raise wages, raise wages, but the decision to hike pay isn't done on the words of a prime minister or president," said Masayuki Kubota, chief strategist at Rakuten Securities."Rather it's because a company needs better human resources to achieve its growth potential."
The survey showed companies are less eager to bear the brunt of another Kishida plan: unprecedented military spending to counter growing threats from China and North Korea. To help pay for it, the plan calls for corporate tax surcharges of 4 per cent to 4.5 per cent that would take effect from fiscal 2024 or later.
Asked what expenses would be curtailed if corporate levies go up, the top answer was capital spending, at 42 per cent, followed by dividends and wages.
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