Uniqlo owner Fast Retailing to boost Japan salaries by up to 40%

UNIQLO-owner Fast Retailing will raise annual pay for its full-time employees in Japan by as much as 40 per cent, the company said.

The plan will affect staff at both the company’s headquarters and its stores, the retailer said in a statement on Wednesday (Jan 11).

Companies in Japan facing the fastest pace of inflation in decades, forcing them to consider wage hikes to retain and motivate employees. Consumer prices in Tokyo outpaced forecasts to hit 4 per cent for the first time since 1982, suggesting a strong underlying price trend.

Starting monthly salaries for university graduates will increase to 300,000 yen (S$3,021) from 255,000 yen, while salaries for new store managers will rise to 390,000 yen from 290,000 yen. “For other employees, the company plans to increase annual salaries by as much as 40 per cent,” the company said in the statement.

“Going forward, the new remuneration of each employee will be decided by globally aligned grade criteria” based on work performance and results, as well as the ability to contribute to the business, Fast Retailing said. BLOOMBERG