Japanese companies have accepted a 5.4% wage increase, the highest rate in 34 years.

Japanese companies have committed to a 5.4% wage increase this year, according to Rengo, the country's largest trade union federation. Announced on Friday, this figure is slightly lower than the initial reading of 5.46% revealed last week. Nevertheless, it is set to be the highest wage increase in 34 years.

Rengo, which has 7 million members, regularly reports on the outcomes of closely watched wage negotiations, typically concluding by mid-March for large firms. When including agreements with small businesses and unions from April to June, final figures often come in lower than initial estimates. Rengo's president, Tomoko Yoshino, stated in a press conference that the agreed wage increases were significantly high and expressed a desire for this trend to extend to small enterprises. This year's wage increase can be compared to last year's average rise of 5.25%.