Increase gets backlash as public sees real wages fall
Japanese Prime Minister Fumio Kishida has agreed to return a portion of his salary ahead of a controversial hike that garnered criticism from the public, according to reports.
Kyodo News reported that Japan's latest proposed law revision is set to raise Kishida's annual salary by JPY460,000, hiking it to around JPY40.61 million.
Cabinet ministers will also see an increase of JPY320,000, which will boost their annual salaries to around JPY29.61 million.
The increase is part of the legislation aimed at amending pay for national public servants, particularly central government officials.
Japan's real wages decline
But the increase for Kishida and cabinet ministers has drawn criticism from the public, with Japan's Opposition pointing out that it arrives at a time when the public is struggling with the rising cost of living.
It was also noted that it comes as Japan's real wages dropped 2.5% in August, a decline for the 17th straight month, Nikkei Asia reported.
The latest ECA International forecast also said Japanese workers will see "little improvement" in their real incomes by the end of next year despite inflation falling.
"A decrease of 0.4% in real terms in 2023 will only be slightly offset by real salary growth of 0.1% next year," ECA International said on its media release.
Return offer
The government answered the criticism on Thursday saying Kishida and the Cabinet officials will be returning a portion of their salary, Jiji Press reported.
Chief Cabinet Secretary Hirokazu Matsuno said Kishida, ministers, state ministers, and parliamentary vice ministers in his cabinet have agreed to return to increased amount at a meeting.
Matsuno said the government should not invite the "mistrust" of the people, according to Kyodo News. However, it also has no plans of changing the controversial bill as it pushes through Cabinet.
Japan's private employees recently scored an average pay hike of 3.58%, the biggest in about 30 years, after this year's spring wage talks.
It follows the major increases implemented by major employers across Japan, including Fast Retailing, Oriental Land, Sumco, and Aeon.
