Bank of Japan officials figure that average base wage gains of 1 percent are needed in the coming fiscal year to sustain the economy's emergence from two decades of stagnation, say sources familiar with central bank's discussions.
Such a bump would be double the estimated rise of base wages for fiscal 2014.
As the slide in oil prices depresses consumer prices, higher pay will be critical to keep BOJ Gov. Haruhiko Kuroda's reflation campaign going. And income gains are needed to sustain consumer spending power, the sources said, asking not to be named as the talks are private.