A Ministry of Economy, Trade and Industry survey revealed Friday that 64.5 percent of the nation’s small companies have decided to raise pay this fiscal year, up from 56.8 percent the previous year.
“The virtuous cycle of the economy is having a wider impact,” industry minister Toshimitsu Motegi said, touting the positive results of “Abenomics,” Prime Minister Shinzo Abe’s deflation-busting economic program.
The survey in June covered 30,000 companies but only drew responses from 10,380. It apparently didn’t say whether the raises on average would keep pace with the inflation being stoked by Abenomics.
Among those hiking pay, 15.3 percent decided to limit the raises to pay scales and 27.1 percent to bonuses, while 20.9 percent chose to raise both. The remaining 36.7 percent decided to issue pay hikes in other forms.
The hikes in pay scale are mostly from ¥2,000 to just under ¥5,000, accounting for 42.4 percent of such raises.
With multiple answers allowed, 75.7 percent of all responding companies hiking pay said they did so to retain employees at a time when labor is short, and 28.9 percent said they did so to reward employees for improving earnings.