Japan's biggest labour group seeks midpoint target of 6% for 2027 wage talks
SPY•Rengo set a midpoint target of 6% for 2027 wage increases, including a 4% base-pay rise, while keeping its minimum benchmark at 5%. It also set a first medium-term goal of raising wages 15% by 2030.
1. Higher wage target
Japan's largest labour group, Rengo, set a 6% midpoint target for next year's annual wage negotiations and retained a minimum benchmark of 5% or more. The 6% target includes a 4% base-pay increase and is intended to establish 5% as a floor rather than a target.
2. Settlements expected near 5%
Rengo represents about 7 million workers and its targets guide member unions. Unions sought average increases of 5.94% in the 2026 wage round, which produced an average increase of 5.01%; economists expect 2027 settlements to remain broadly similar to this year's level.
3. Inflation and longer-term goal
Economists said wage increases above around 5% could lead companies to pass labour costs on to prices and risk inflation exceeding the Bank of Japan's 2% target. Rengo also set a first medium-term goal of increasing wages 15% from current levels by 2030. It will formally approve its 2027 policy in December, with annual negotiations typically concluding in March.
