Employers planning starting wage hike of up to 29,999 yen
A number of employers in Japan said they are planning to hike the starting salary of their new employees to attract more talent amid a shortage of labour, according to a new report.
A survey by Jiji Press among 100 major companies found that 42 are considering increasing the starting pay for new graduates who will join them this spring.
Others said they plan to increase their starting salary:
In spring 2026 (five companies)
Both this year and next (four companies)
Among the employers who plan to hike their salary this spring, 13 said they will hike pay by 10,000 yen to 19,999 yen, according to the report.
Another nine employers are planning a bigger hike between 20,000 yen and 29,999 yen.
Meanwhile, the report said 33 companies are still discussing the possibility of raising starting pay or have not responded to the poll.
A total of 16 employers, on the other hand, said they have no plans to increase their starting pay.
The hike in starting pay among fresh graduates comes as more employers expressed their intentions to boost recruitment for fresh graduates.
A poll by Nikkei Research for Reuters revealed earlier this year that 69% of Japanese firms are intensifying recruitment activities for new graduates.
These measures demonstrate Japanese employers' moves to attract more talent, as recent research estimates that the country will be short of 3.84 million workers by 2035.
Some employers are already feeling the impact, as Nikkei Research revealed that 66% of organisations said labour shortages are seriously or fairly seriously affecting their business.
