Uniqlo's parent company to raise wages for employees in Japan by up to 40%

GOING UP: As more shop workers around the world demand salaries higher, Fast Retailing Co. Ltd . joins the fray and will compensate all employees in Japan based on their ambition, talents and contribution to the company.

The change of pace was announced on Wednesday and will launch in March. This effort is part of the distribution conglomerate's plans to increase growth and competitiveness in line with global standards. Compensation is already underway in his home country of Japan, where wage levels have remained low. As Japan's inflation rate hit its highest level in 41 years, Prime Minister Fumio Kishida last week called on companies to raise employee wages to avoid stagflation.
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Uniqlo's parent company is also reassessing its human resources system, to better enable it to pay individually its employees based on their growth, ambition and ability to contribute to the company. The salary upgrade will affect company employees and store employees. One of the goals is to establish a management structure that can better compensate employees for the benefit of the company as a whole.

Company will establish desired capabilities and requirements for each job category and level, then increase compensation level of each employee up to 40 percent. Fast Retailing's goal is to adapt to the reality of the company's flat and "very nimble" management structure. The approach will include a base salary adjustment and bonus determined by performance results for each period, and position-based allowances currently existing in Japan will be eliminated.

An example of the increase in Japan is the monthly salary of an employee starting with college on diploma will increase from the current rate of 255,000 yen to 300,000 yen (or $2,300) - representing an annual salary increase of approximately 18%. In addition, the salary of a new store manager in his first or second year will increase from 290,000 yen to 390,000 yen, an annual gain of about 36%. For other employees, the company plans to increase annual salaries by up to 40%.

Fashion Jan 12, 2023 0 63 Add to Reading List

Uniqlo's parent company to raise wages for employees in Japan by up to 40%

GOING UP: As more shop workers around the world demand salaries higher, Fast Retailing Co. Ltd . joins the fray and will compensate all employees in Japan based on their ambition, talents and contribution to the company.

The change of pace was announced on Wednesday and will launch in March. This effort is part of the distribution conglomerate's plans to increase growth and competitiveness in line with global standards. Compensation is already underway in his home country of Japan, where wage levels have remained low. As Japan's inflation rate hit its highest level in 41 years, Prime Minister Fumio Kishida last week called on companies to raise employee wages to avoid stagflation.

Related Galleries

Uniqlo's parent company is also reassessing its human resources system, to better enable it to pay individually its employees based on their growth, ambition and ability to contribute to the company. The salary upgrade will affect company employees and store employees. One of the goals is to establish a management structure that can better compensate employees for the benefit of the company as a whole.

Company will establish desired capabilities and requirements for each job category and level, then increase compensation level of each employee up to 40 percent. Fast Retailing's goal is to adapt to the reality of the company's flat and "very nimble" management structure. The approach will include a base salary adjustment and bonus determined by performance results for each period, and position-based allowances currently existing in Japan will be eliminated.

An example of the increase in Japan is the monthly salary of an employee starting with college on diploma will increase from the current rate of 255,000 yen to 300,000 yen (or $2,300) - representing an annual salary increase of approximately 18%. In addition, the salary of a new store manager in his first or second year will increase from 290,000 yen to 390,000 yen, an annual gain of about 36%. For other employees, the company plans to increase annual salaries by up to 40%.