Region:
Asia
Category:
Economy

The Japanese government encourages wage increases

Region:
Asia
Category:
Economy
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Wage increases will be the starting point for the third pillar of economic policy of Prime Minister Shinzo Abe. This pillar is the business growth strategy

Since the 2008 crisis triggered by the bankruptcy of Lehman Brothers, large Japanese companies have not increased wages. small businesses did with the intention to guarantee the necessary labor. If large firms decide to increase the minimum wage is possible that small firms offer higher wages.

Wage increases will be the starting point for the third pillar of economic policy of Prime Minister Shinzo Abe. This pillar is the business growth strategy. The government expects an increase in wages stimulate demand and consumption, which in turn could result in higher sales and therefore profits. This, according to government forecasts, encourage companies to implement a new growth strategy.

This week is expected that many companies respond to requests from the unions. According to some analysts, fewer than half of the firms accept all requests and other union probably will only give the green light a rise of base salary.

The higher wage base will lead to a rise in monthly wages. However, says the analyst, this will not be sufficient to counteract the effects of immediate consumption tax increase, which will mean about $ 775 a year extra charge for each household.

As the base salary increase will increase the household income in subsequent years also can be said that the tax increase will be neutralized. This, for employees, is a relief. Workers said the analyst, prefer a higher wage base for extra payments for overtime, for example.

traducción: Belén Zapata