Japan's Wage Gap Widens as Small Firms Struggle

Feb 13, 2025 | News On Japan

TOKYO - The 2025 spring wage negotiations have officially begun, with major automakers submitting their demands on February 12th. The key question remains: will wage increases continue to rise this year?

According to Japan’s Ministry of Health, Labor, and Welfare, the average wage increase for major private companies in the 2024 negotiations was 5.33%, the highest level since 1991, right after the economic bubble burst.

However, this figure reflects only large corporations with 1,000 or more employees.

A separate survey by the Japan Chamber of Commerce and Industry found that the wage increase rate for small and medium-sized enterprises (SMEs) in 2024 was significantly lower at 3.62%.

Looking ahead to 2025, 48.5% of SMEs plan to raise wages, while 26.1% have no plans for salary hikes. With this disparity, closing the wage gap between large and small businesses remains a challenge.

Source: 東海テレビ NEWS ONE

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