Tokyo-based insurer Meiji Yasuda Life Insurance is reportedly considering raising wages by an average of 5% for all of its 47,000 employees in the upcoming fiscal year starting in April, reported Bloomberg.
This move comes as part of a government-led campaign to bolster wages and stimulate economic recovery.
For the 11,000 internal staff members at Meiji Yasuda, who handle planning, investment and office work, this marks the second consecutive year of wage increases.
The company’s 36,000 sales staff will see their pay rise for the fourth year in a row.
The wage plan will be finalised after discussions with the labour union, with younger employees at the company for five years or less set to receive an 8% pay hike, reported NHK World.
In addition to this, Meiji Yasuda is also boosting the starting salary for new university graduates.
Those joining the company from April can expect to start at a monthly salary of as much as Y332,000 (approximately $2,100).
This is an increase from previous starting salaries for graduates.
The company’s decision aligns with the Japanese Trade Union Confederation’s (RENGO) call last year for wage hikes of at least 5% by 2025, reported Reuters.
Prime Minister Shigeru Ishiba, who has been in office since October 2024, has emphasised wage growth as a key element of his economic policy, aiming to support the country’s tentative economic recovery.
Last month, Meiji Yasuda also announced the upcoming expiration of its partnership agreement with Talanx, initially signed in 2010. The agreement will end on 31 December 2025.
Meiji Yasuda agreed on the economic terms for transferring its shares in Warta Group and Europa Group, which it acquired in 2012, back to Talanx.
Meiji Yasuda Life Insurance was established through the merger of Meiji Life Insurance and Yasuda Mutual Life Insurance, two of Japan’s oldest life insurers.
According to its website, as of 1 October 2024, the company operates with 105 regional offices and market development departments, 1,033 agency offices and 19 group marketing departments.
“Meiji Yasuda plans 5% wage increase for 47,000 staff ” was originally created and published by Life Insurance International, a GlobalData owned brand.
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