News On Japan

Fast Retailing Raises New Graduate Starting Salary to 370,000 Yen

TOKYO - Uniqlo, one of Japan’s leading fast-fashion brands, announced on the 22nd that it will raise the starting salary for new graduates to 370,000 yen, a move that has drawn widespread attention.

Fast Retailing said the new salary level will apply to graduates joining the company in April 2026, with the starting monthly pay lifted by 40,000 yen from the current 330,000 yen. The increase targets positions known as global leader candidates, which assume overseas transfers, and will bring annual income to roughly 5.9 million yen.

At the same time, starting salaries for regionally based full-time employees who are not subject to transfers will also rise by 25,000 yen to 280,000 yen.

This marks the fourth increase in starting pay since 2020, amounting to a total rise of 160,000 yen over six years, an unusually generous improvement by Japanese standards.

Fast Retailing director Ken Okazaki said the company has achieved record-high performance for four consecutive fiscal years, adding that the strong results have created momentum to further strengthen employee compensation. By improving treatment, the company aims to attract and secure highly capable talent.

On the streets, reactions were mixed. One man said he would choose such a company without hesitation, recalling that his own starting salary had been 165,000 yen and noting that higher pay made sense given rising prices. Others said the increase would clearly boost motivation, especially for young workers with limited savings.

Among current workers, many expressed understanding for higher starting salaries amid inflation and labor shortages. However, younger people preparing to enter the workforce offered a more cautious view, saying they prioritize doing work they want to do over salary levels alone, and that long-term fulfillment matters more than pay.

The company said it will continue to raise compensation not only for new graduates but also for existing employees, based on individual ability and performance.

Similar moves are spreading elsewhere. Real estate firm Open House Group plans to raise the starting salary for sales staff joining in April 2027 from 360,000 yen to 400,000 yen, while Nippon Life Insurance has announced plans to lift base pay by more than 6% in 2026, signaling that corporate investment in people is gradually accelerating across Japan.

Source: FNN

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