Japan’s National Personnel Authority recommended Thursday that the government raise basic salaries for public servants by an average of 0.27 percent and their bonuses by 0.15 month, both for the first hike in seven years.
The fiscal 2014 pay hike, in line with increasing private-sector wages amid Japan’s economic recovery, will push average annual pay for public servants up 1.2 percent from the present level to 6,618,000 yen.
The raise is likely to be implemented as recommended as the government in July confirmed a policy of respecting the authority’s recommendations.
Under the recommendation, monthly salaries will be raised mainly for younger people, including a 2,000 yen hike for starting salary, while those for people aged 55 or older, which are said to be higher than private-sector levels, will be kept unchanged.
Annual bonuses will be increased from 3.95 months at present to 4.1 months.
But monthly salaries for personnel at government agencies’ local bureaus will be reduced from fiscal 2015 in view of their relatively high levels compared with the private sector.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.