UA Zensen Seeks 6 Percent Wage Increase for 2027
UA Zensen proposed a 6 percent overall wage increase for full-time employees in 2027 to narrow the pay gap for smaller companies.
The labor union group UA Zensen announced a draft policy framework seeking a 6 percent overall wage increase for full-time employees in 2027. The proposal specifies a 4 percent rise in base salaries, a 7 percent raise for part-time workers, and an additional 1 percent hike for employees at firms where wages lag behind their peers.
This target aligns with the goals of the umbrella federation Rengo and follows a 4.72 percent gain secured for the current year. The union intends to narrow the pay gap between high-performing corporations and small or medium-sized enterprises. These sustained demands support Bank of Japan projections for a cycle of moderate wage and price increases, which may justify further interest-rate hikes.
While real wages in Japan rose for eight consecutive months through August, UA Zensen leadership argues the trend remains unstable. Vice president Takeshi Matsui noted that the union does not believe real wages have turned positive yet for workers at small and medium-sized companies.
