Tokyo: Companies in Japan raised or plan to raise the average monthly pay per employee by 3.2 percent, or 9,437 yen, in 2023, a labor ministry survey has shown. 

The hike, which followed the previous year’s increase of 1.9 percent, or 5,534 yen, was the largest since the start of comparable data in 1999, the ministry said Tuesday.

High prices and labor shortages led more companies to raise wages, officials said.

The ministry conducted the survey in July and August on companies with 100 or more employees, receiving valid responses from 1,901 companies.

The wage growth data reflect pay scale hikes and regular salary increases but not overtime pay or bonuses.

By industry, the mining, quarrying, and gravel collection sector logged the biggest growth at 5.2 percent, followed by 4.5 percent at the information and communications sector and 4.4 percent at the lodging and restaurant service sector.

Of the total respondents, 89.1 percent said they raised wages or planned to do so, up from 85.7 percent the previous year. Those that lowered wages or planned to do so accounted for 0.2 percent of the total, down from 0.9 percent.