A total of 62.1% of companies in Japan have raised or plan to raise base pay in fiscal 2023, up sharply from 38.7% the previous year, as they seek to secure talent and match rising prices, a Finance Ministry survey showed.

The trend was notable particularly outside the manufacturing sector, with 56.0% saying they have or will raise wages, expanding from 28.8% the year before, the survey said. Within the manufacturing sector, the figure rose to 69.8%, up from 52.0%.

Hikes of 3% or more were recorded for 37.3% of the businesses that have raised base pay or plan to, up from 13.7% the previous year.