The owner of Uniqlo is boosting pay for Japan employees by up to 40%

Inflation bites 

Fast Retailing, the Japanese giant that owns popular clothing brands Uniqlo and Theory, will start paying its employees much more this year. The company announced Wednesday that it would boost salaries in Japan by up to 40%, acknowledging that “remuneration levels have remained low” in the country in recent years.

“This will include employees from headquarters and corporate departments responsible for the functions of the company’s global headquarters, as well as employees working in stores,” the firm said in a statement.

The move comes just days after Japanese Prime Minister Fumio Kishida called on business leaders to accelerate raises for workers, warning that the economy risked falling into stagflation if wage rises continued to fall behind price increases. Japan is grappling with the biggest drop in living standards in nearly a decade.