Uniqlo’s owner boosts new graduate pay as Japan faces inflation
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Uniqlo saw a similar wage hike in 2023, when annual pay for full-time employees were bumped by as much as 40 per cent.
PHOTO: AFP
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TOKYO – Uniqlo owner Fast Retailing will raise base salaries for new graduates in Japan by as much as 12 per cent, stepping up efforts to secure and retain talent as the country’s workers grapple with inflation.
Annual pay will grow by about 12 per cent to 5.9 million yen (S$48,400) starting in March 2026 for university graduates in management-track programmes, the Tokyo-based retailer said in a statement on Dec 22.
Pay for other graduates will increase by about 10 per cent to 4.5 million yen.
“By fostering a virtuous cycle of growth and wage increases, Fast Retailing aims to boost overall productivity and achieve sustainable growth for the company,” the retailer said.
Fast Retailing implemented a similar wage hike in 2023
The firm’s moves underscore a broader shift towards higher salaries in corporate Japan as labour shortages intensify and consumer prices reach levels not seen in decades.
The average wage in Japan was US$49,446 (S$63,800) in 2024 – the lowest level of the Group of Seven nations (G-7), Organisation for Economic Co-operation and Development (OECD) data shows – amid decades of economic stagnation.
The US had the G-7’s highest level, US$82,993, according to the OECD. BLOOMBERG
