Japan manufacturers' union to target US$77 monthly base pay hike next year

Japan’s largest labour union group, Rengo, is seeking an overall increase in wages of at least 5% in 2026,

    • The increase in base pay is crucial to Japan’s stated goal of achieving sustainable wage growth exceeding the pace of inflation.
    • The increase in base pay is crucial to Japan’s stated goal of achieving sustainable wage growth exceeding the pace of inflation. PHOTO: REUTERS
    Published Wed, Nov 26, 2025 · 07:06 PM

    [TOKYO] A Japanese labour union group representing major manufacturers said on Wednesday (Nov 26) that it would seek an increase of at least US$77 in monthly base pay for next year, the same target as this year.

    The Japan Council of Metalworkers’ Unions (JCM) is considered a pace-setter for annual wage negotiations and represents about 2 million workers for blue-chip companies including Toyota Motor and Nippon Steel.

    The increase in base pay, which excludes seniority-based annual hikes already built into the pay scale, is crucial to Japan’s stated goal of achieving sustainable wage growth exceeding the pace of inflation.

    Japan’s largest labour union group, Rengo, of which JCM is a member, is seeking an overall increase in wages of at least 5 per cent in 2026, including a rise in the base pay of at least 3 per cent.

    According to Rengo, its member unions secured an average pay rise of 5.25 per cent this year, the biggest hike in 34 years. REUTERS

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