Japan's personnel authority on Thursday proposed raising the monthly salaries of civil servants in general positions by an average 2.76 percent, or 11,183 yen, in fiscal 2024, the largest increase in around three decades.
The recommendation, presented to the cabinet and Diet, would mark the first wage hike exceeding 2 percent since 1992 and seeks to close the gap with the private sector where salaries have been increasing more sharply.
To secure talent, the National Personnel Authority proposed record-high increases of over 20,000 yen for the starting monthly salaries of both high school and university graduates.
The authority also recommended increasing bonuses by 0.10 month of salary to an equivalent of 4.60 months, calling for raising both monthly wages and bonuses for the third consecutive year.
Local government employees are also expected to see similar pay increases based on the recommendations.
If the chief Cabinet secretary and other relevant ministers accept the authority's recommendations, the average annual salary of staff in government administrative positions, whose average age is 42.1 years, will increase by 228,000 yen to 6,916,000 yen.
The recommendation came as the average monthly wage hike among big companies topped 5 percent in Japan for the first time since 1991, according to the country's largest business lobby, amid rising energy and food prices.
The authority also proposed a comprehensive overhaul of the salary system for the first time in 10 years to motivate employees by distributing bonuses more generously to those with outstanding performances.
In response to the rise in dual-income households, the authority recommended phasing out spousal allowances by fiscal 2026, while increasing monthly child allowances from 10,000 yen to 13,000 yen per child.
It also proposed lifting the cap on commuting allowances, including express train fees, from 75,000 yen to 150,000 yen per month to support employees who need to commute long distances due to childcare or caregiving responsibilities.
