Daiwa Securities Group Inc. (8601), Japan’s second-largest brokerage, plans to raise salaries for about 5,000 junior staff to offset swelling costs in the nation as the government prepares to increase the consumption tax.
The securities firm is considering increasing monthly pay by about 3 percent, targeting employees in their 20s and 30s, Misato Kinoshita, a spokeswoman for Daiwa in Tokyo, said today. The company hasn’t made a decision yet, she added.
Daiwa is following larger rival Nomura Holdings Inc. (8604) in boosting pay as Prime Minister Shinzo Abe urges companies to help defeat deflation and sustain the economic recovery. Consumers’ spending power will erode unless incomes climb to make up for rising consumer prices and the government’s planned 3 percentage-point increase in the sales tax in April.
The wage increase will take effect in April, public broadcaster NHK Television reported earlier today. Daiwa, which has about 14,000 employees, paid a starting salary of 210,000 yen ($2,000) a month to college graduates who joined the firm last April.
Nomura will raise pay for about 4,000 domestic staff by an average 2 percent starting in April, the Tokyo-based company said in November. The move will target younger employees, who are more likely to spend money and contribute to the economy, Nomura said.
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