Japanese Unions Demand Largest Wage Hike in Over 30 Years

The 6.09% average pay increase request reflects rising living costs and labor shortages, with smaller unions seeking even higher hikes.

Japan's largest labor union group, Rengo, has requested an average wage increase of 6.09% in the 2025 labor-management negotiations.
This marks the first time in 32 years that wage hike demands have exceeded 6%, surpassing last year’s 5.85% request.
Smaller unions, representing companies with fewer than 300 employees, are seeking an average raise of 6.57%, exceeding Rengo's 6% target for such unions.
The demand comes as Japan faces rising living costs and labor shortages, with unions pushing for sustainable wage growth to support economic stability.
Major companies are expected to announce their responses to these wage demands next week, with negotiations typically concluding by mid-March.