STORY: Japanese companies delivered the biggest wage hikes in three decades this year.
That's according to the nation's largest union on Wednesday.
It said monthly pay was up 5.1% on average this year, with both big and small firms following the trend.
The outcome of what's called the 'shunto' - or spring labor negotiations - is seen as key for Japan to achieve a positive cycle of economic recovery.
It would help improve household income and consumption to outweigh the rising cost of living.
Any positive and self-sustaining growth could also help policymakers put an end to deflation.
It might also bring the Bank of Japan closer to further interest rate hikes.
In mid-March, major firms said pay raises had accelerated to 5.28%, which was the biggest since the 1990s.
The central bank then made its landmark decision to end negative interest rates.
But income inequalities remain, with small firms finding it hard to offer big wage increases.
To address such issues, Prime Minister Fumio Kishida's administration has vowed to raise minimum hourly pay to 1,500 yen - or $9.27 - from around 1,000 yen by the mid-2030s.
