7 days ago
Japanese firms offer pay raises to retain staff amid labor crunch
Some Japanese employers are offering higher pay and other financial rewards in a bid to retain staff amid a labor shortage and rising inflation.
Nojima has decided to give two raises in basic pay a year beginning this fiscal period.
The major electric-appliance retailer says around 3,000 employees can expect a hike of 10,000 yen, or around 68 dollars, a month in September.
Another raise is slated for as early as January next year.
A young Nojima employee at a Tokyo store says rice and vegetables are very expensive and the new scheme is quite helpful. The employee adds that the biannual hikes will ensure long-term employment.
A Nojima official said: "The employees will be able to work with a sense of assurance now that the twice-a-year of base pay hikes have been decided. The company plans to raise wages as soon as possible even if it's only by 10,000 yen."
Skylark Holdings plans to raise a salary cap for its restaurant managers to 10 million yen, or about 68,000 dollars, a year.
The amount at the major restaurant-chain operator is currently around 57,000 dollars.
Surging consumer prices in Japan have been outpacing salary increases. Inflation-adjusted wages for May posted their largest drop in nearly two years.
