Nomura to boost pay raises as workers face highest inflation since 1981
- Nomura Holdings has said it will offer its employees higher wage raises than the average seen over previous years, starting in April. | BLOOMBERG
- Feb 8, 2023
Nomura Holdings will give its employees in Japan bigger pay raises starting in April, citing intensifying competition for talent and more rapid inflation.
Employees excluding executives will get a slightly larger raise than the roughly 3% average of the past few years, Japan’s largest brokerage said in a statement Tuesday.
A growing number of Japanese firms have signaled plans to raise wages following government requests to help workers cope with the highest inflation since 1981. Sustained pay rises may prompt the Bank of Japan to shift away from its long-standing ultra-easy monetary policy.
Nomura employees who are in their 20s and 30s and hold nonmanagerial jobs will receive a slightly higher raise than the 6.2% average over recent years, the company said. That figure applies to base salary and gains related to performance and promotions, and excludes bonuses and allowances. The firm employs just over 15,000 people in Japan.
Japan’s nominal wages are increasing at the sharpest pace since the late 1990s — something new to many after years of deflation. Even struggling regional banks are under pressure to hike salaries as the nation’s financial regulator urges them to invest in talent, according to people familiar with the matter.
Global investors are paying close attention to Japan’s annual wage talks because they could help to persuade the central bank to tighten the monetary spigot once Gov. Haruhiko Kuroda steps down in April. The Bank of Japan’s surprise widening of a bond yield cap in December fueled speculation for a policy shift.
Among others in the financial sector, Dai-ichi Life Insurance plans to raise wages by an average 5%, while Sumitomo Mitsui Financial Group will boost starting salaries for university graduates by 24%, the Nikkei reported.
In a time of both misinformation and too much information,quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.SUBSCRIBE NOW