Uniqlo released a statement this Wednesday saying that they will raise the salaries of all employees by a huge 40% before March this year. A 40% pay rise is nothing to scoff about, and that too for all employees in a brand over a whole country. This change was motivated to match the salaries of the employees of other countries.
In light of the changes to its remuneration plan that covers 8,400 full-time workers, The cost of labor for the casual clothing chain’s operator is expected to rise by about 15 percent.
Beginning monthly salaries for graduates of universities will be raised to 300,000 yen instead of 255,000 currently. The company said this is an annual increase of around 18 percent.
The salaries for new Store managers will come in at 390,000. Yen. This is increasing by 100,000 yen. This is an increase of about 36 percent per year. The annual salaries of other employees could be increased by as much as 40 percent per the company.
The Japanese government has been urging companies to raise their wages due to increasing living costs. The move of the world’s largest clothing company will likely affect Shunto’s spring wage talks between labor and management across Japan every year.
The Chief Cabinet Secretary Hirokazu Matsuno welcomed Fast Retailing’s decision and said he hopes other companies will follow and increase salaries “to the greatest extent.”
“The most effective way to deal with the price of commodities that are high in the present is to increase wages continuously in order to keep up with increasing costs,” the top government spokesperson told a regular news gathering.
The bonuses for employees of Fast Retailing ( Uniqlo’s parent company) will also increase due to the upcoming changes. The company announced that it would remove executive bonuses and establish a standard grading system for determining employee pay.
The latest pay increase follows an increase in the hourly wage in Japan by 20 percent per month in September.
Uniqlo’s parent company, Fast Retailing, had record high profits of about 275 billion yen as of August last year, which is more than a 60% of increase from a year before.
Operating profits of 297.33 billion yen, based on the sales figure of 2.3 trillion dollars. Both records were set.