Rengo sets 2027 wage demand at '6% central, 5% or more' and first mid-term target

Rengo, Japan's national trade union confederation, announced on 22 October its basic framework for the 2027 spring wage talks. The overall demand for monthly wages, combining base pay increases and regular raises, is "6% central, 5% or more", according to Sankei Shimbun, Tokyo Shimbun, Nikkei and Nishi-Nippon Shimbun. NHK and TBS also reported the demand. "5% or more" is used for the fourth year in a row, and "6% central" is new. [ 3 , 4 , 5 , 6 , 7 , 8 ]

Rengo deputy secretary general Akira Nihei told TBS that the target had been a single "5% or more" until now and that adding "6% central" is the big difference. For small and medium-sized firms the demand remains "6% or more", the same as in 2026. Asahi reported a guideline of 7% for non-regular workers such as part-timers, also the same figure as this spring. Nikkei said the small-firm demand applies to unions with fewer than 300 members. [ 1 , 3 , 4 , 5 ]

Sankei and Tokyo Shimbun reported that Rengo met its "5% or more" goal through the 2026 talks and that real wages turned positive, but that the framework says few people feel life has improved. Rengo judged that further gains are needed given prolonged price rises. The framework also said consumer spending is weak because people lack confidence that wages will keep rising. [ 4 , 6 ]

Rengo president Tomoko Yoshino said at a press conference that if the aim is "5% or more", setting a higher target value is a key. Nikkei quoted her as saying more effort is needed to put real wage growth of 1% or more on a steady track. Asahi and Nikkei reported that the average demand of Rengo unions in this year's talks was 5.94%. [ 1 , 5 , 6 ]

On this year's results, TBS and Mainichi reported a wage rise of 5.01%. Mainichi said only 43% of affiliated unions secured 5% or more and that the average at firms with fewer than 300 members is still below 5%, so Rengo said the spread of the wage norm is only half-way. Nikkei quoted Yoshino as saying the share of unions with raises of 5% or more has not yet reached half, and said Rengo kept "5% or more" because it sees many firms unable to keep up with high raises. [ 2 , 3 , 5 ]

Rengo also set a mid-term target for the first time. Mainichi and Nikkei reported that it seeks median monthly wages of 360,000 yen at age 35 and 340,000 yen at age 30 by 2030. Mainichi said the target was calculated on a rise of about 15% over four years, and Nikkei described it as a 15% rise in scheduled cash earnings. [ 2 , 5 ]

Nikkei noted that Keidanren chairman Yoshinobu Tsutsui said in September that considering base pay increases should remain the standard. It also quoted Taro Saito of Nissei Basic Research Institute as saying some firms may try to hold down raises because of slower price rises from a planned food and drink consumption tax cut. [ 5 ]