TOKYO : Japan’s Dai-ichi Life Insurance plans to raise wages by an average 5 per cent for its roughly 50,000 workers this spring, including a rare base salary hike for non-sales staff, a source with knowledge of the matter told Reuters.
It would be the first base salary hike in 28 years for the 10,000 non-sales staff at the unit of Dai-ichi Life Holdings, the person said, declining to be identified because the plan is not public. The average 5 per cent would include a regularly scheduled rise based on seniority.
The base salary, or regular pay, makes up most of total cash earnings and determines a wage trend in Japan.
A spokesperson said the company plans to make its decision through discussions with its labour union, adding that it aimed to achieve a “healthy cycle of distribution and growth” that the government is aiming for.
As companies enter the annual spring wage negotiations with labour unions, Prime Minister Fumio Kishida’s government has been pushing for wage increases of at least 5 per cent to help offset price rises.