March 18, 2015 / 2:33 AM / in 3 years

Toyota joins Japan peers in agreeing to higher base-pay raises

TOKYO (Reuters) - Japanese auto maker Toyota Motor Corp 7203.T said on Wednesday it would raise the monthly base salary for workers by 4,000 yen ($33), its biggest hike in over a decade, joining other major domestic firms in agreeing to larger rises in annual wage talks.

A security guard walks between Toyota Motor Corp's cars displayed at the company's showroom in Tokyo June 17, 2014. REUTERS/Yuya Shino

The rise was short of union demands for 6,000 yen per month, but up from last year’s 2,700 yen hike. Earlier, electronics firm Panasonic Corp 6752.T and auto maker Nissan Motor Co Ltd 7201.T announced monthly base-pay rises of 3,000 yen and 5,000 yen respectively.

Higher wages are considered key to sustaining growth and decisively ending deflation in the world’s third-biggest economy. Prime Minister Shinzo Abe’s government has been calling for Japan Inc - sitting on record levels of cash amid hefty profits - to do its part in stimulating the economy and lift workers’ pay.

($1 = 121.3300 yen)

Reporting by Maki Shiraki; Writing by Chris Gallagher; Editing by Kenneth Maxwell

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