Tokyo: Wage increases agreed during this year’s “shunto” spring labor-management negotiations at major companies in Japan averaged 3.60 percent , the highest level since 3.89 percent in 1993, the labor ministry said Friday.

The average growth rate was 1.40 percentage points higher than the previous year, the ministry said.

The ministry’s survey covered 364 businesses with capital of at least 1 billion yen, 1,000 employees or more, and labor unions.

Companies were able to agree on pay hikes exceeding the annual inflation rate of over 3 pct, depending on the business size and type, people familiar with the matter said.

Meanwhile, the Japan Business Federation, better known as Keidanren, said the same day the final tally by the largest business group in the country showed that agreed pay hikes at 136 major firms with at least 500 employees in the 16 business sectors averaged 3.99 pct, up 1.72 ponts, to hit the highest level since 4.92 pct in 1992.

“Since we called for wage increases that would not be defeated by rising prices, the momentum for hikes has picked up and entered a different stage,” a Keidanren official said.

The Japanese Trade Union Confederation, or Rengo, has already released the final shunto results showing the average wage hike of 3.58 pct, the level unseen since 3.90 pct in 1993.

JIJI Press