Japanese unions to demand wage increases of at least 5% — The Japan Times

Japan’s trade union confederation Rengo plans to demand wage increases of at least 5% during annual spring negotiations with employers in 2027. This will be the fourth consecutive year that the union federation has put forward such demands.

As The Japan Times reports, Rengo seeks to cement the trend toward rising wages despite growing economic uncertainty caused by the unstable international situation.

Demands for small unions

For small unions with fewer than 300 members, Rengo will demand wage increases of at least 6%. This level matches this year’s demand and is intended to help narrow the wage gap between large and small companies.

As part of its overall demand, the confederation will also insist on an increase in base wage rates of at least 3%. Rengo plans to urge employers to invest more actively in human resources, as wage levels in Japan are still not high by international standards.

More current news is available on the UA.News Telegram channel Telegram.

Results of the 2026 negotiations

According to a Rengo survey, the 2026 spring negotiations, known in Japan as shunto, delivered an average wage increase of 5.01%. This was lower than 5.25% in 2025, but the average remained at the 5% level for the third consecutive year. Average monthly pay rose by 16,400 yen.

At small unions, meanwhile, the average increase was 4.69%, or 12,866 yen per month. These figures indicate a difference in the pace of wage increases between employees of large and small companies.

Rengo plans to adopt its targets for 2027 at a central executive committee meeting later in October and give final approval in December. Industry federations and individual unions will then determine their own demands for employers.