Hitachi

Big firms may raise base pay for their workers but then put pressure on suppliers to cut costs, forcing them to keep their workers' wages in check. Photo: AFP

Pay rises at Japan’s top firms will be blunted by rise in sales tax

Big Japanese companies such as Toyota Motor will offer the most generous pay raises in years on Wednesday, but workers will still struggle to offset a sales tax increase next month, highlighting the difficulties the government is facing in overcoming entrenched deflation.

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