Published By : 29 Nov 2013 | Published By : QYRESEARCH
With the Japanese Prime Minister urging companies to help the government combat the current deflation that is plaguing the economy, Japan’s leading brokerage firm Nomura Holdings Inc. has announced a salary raise for approximately 4,000 domestic staff members. The appeal for remedying deflation and sustaining economic recovery was recently made by Shinzo Abe, Prime Minister of the world’s third-largest economy.
With the company’s new salary slab coming into effect from April 2014, the average pay will go up by 2%, according to an official statement made on the company’s website on Thursday. The pay hikes are likely to be aimed at younger employees who have a higher likelihood of spending more money and thus helping Japan deal with the deflation that it is currently facing.
In the recent months, Prime Minister Abe has been aggressively appealing to Japanese companies to offer pay hikes to employees as prices are climbing, but wages are going in the opposite direction. This aspect has eroded the spending power of Japanese households.
Prices of consumer items (not including fresh food), rose in October to 0.9% as compared to the same time in the previous year. This has been recorded as being a gain for the fifth straight time.
The salary hikes will apply to around 4,000 staff members from the total staff of around 13,200. The employees getting a pay hike will receive anywhere between 5,000 yen and 10,000 yen extra per month, according to a spokesperson of the company. Annually, the pay increase will cost the company around 300 million yen.
In the meanwhile, Lawson Inc, one of Japan’s leading convenience store chains, has said that it is trying to hike staff pay by at least 2%-3%.