Japan’s civil servants are set to receive the biggest pay increase in 34 years, a move that could further reinforce the virtuous cycle of wage and price growth long sought by the Bank of Japan as a precondition for continuing monetary tightening.
The National Personnel Authority recommended Thursday a 3.62% increase in average monthly base pay for public employees in the current fiscal year. This would mark the largest rise since 1991 and, when combined with an automatic bump that already kicked in, bring their total wage gain this year to 5.1%. The change will affect roughly 280,000 workers, according to a government official.
AloJapan.com