Large companies promise headline-grabbing hikes, but hard for SMEs to follow suit Read more at straitstimes.com.
TOKYO – “Why is Japan such a difficult and hopeless country to work in?”
Her wages as an irregular worker are substantially lower than those of full-timers who do the same work. And she knows she can earn more abroad – she was paid the equivalent of 2,000 yen an hour – when she worked at a Japanese restaurant in Canada.Once among the world’s richest and top-paying economies in the 1980s, Japan saw wages stagnating as it dramatically lost ground due to a deflationary mindset and low productivity.
The Teikoku Databank consultancy found that 105 listed food producers raised prices for over 20,000 products in 2022, with another 7,100 items slated for a hike in the first four months of 2023. This will cost the average household an extra 68,760 yen per year. Its chairman Masakazu Tokura said on Monday that it was crucial to “wipe out the deflationary mindset and promote investment in people” as the annualSuch calls have fed into a sense that change might finally be in the air.
The wage gap becomes even more obvious when looking at factors such as gender – men took home an average 5.45 million yen in 2021, while women earned just 3.02 million yen – and especially employment status. But in a sign of how undervalued its Japanese staff have been, this was to standardise remuneration worldwide to encourage flexible mobility within the company between its Japan and overseas offices.
Engineering firm JGC Holdings has announced a pay hike of 10 per cent from April. Beverage firm Suntory and chemical manufacturer AGC have respectively pledged 6 per cent salary increments.
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