Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.

The average Toyota employee will earn 2,700 yen ($26.28) more each month, a 0.8 percent increase from last year. Workers will also receive about 7,300 yen ($71.09) more monthly based on seniority and promotions. Finally, the company's union pushed through a median bonus of 2.44 million yen ($23,768) for 2014, the highest in 6 years.

The pay boost comes as Toyota forecasts a record 1.9-trillion yen ($18.5 billion) profit for the fiscal year ending on March 31, according to Bloomberg. It has been helped by the Japanese government's efforts to weaken the yen on international markets and expand inflation. Prime Minister Shinzo Abe has been asking businesses to increase compensation to end years of deflation and offset upcoming higher sales taxes. Honda and Nissan have also raised their wages there in recent months.


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  • 16 Comments
      Mr.Roadrage
      • 9 Months Ago
      This has nothing to o with profits. All major Japanese companies are raising wages. The government is raising the consumptuion tax from 5 to 8% this year, and 10% next year. As part of its so-called stimulus package, the government has demanded that big firms increase wages accordingly, and is threatening to publish the names of those that don't.
        OptimusPrimeRib
        • 9 Months Ago
        @Mr.Roadrage
        Too bad they don't do that here. Then again some idiots might cry socialism. We need to go back to the pre Reagan tax policies.
          yonomo200
          • 9 Months Ago
          @OptimusPrimeRib
          You're going to pay for saying this and pay dearly.
        icemilkcoffee
        • 9 Months Ago
        @Mr.Roadrage
        Shouldn't they be lowering the consumption tax to encourage consumption in that event?
          Hedo D
          • 9 Months Ago
          @icemilkcoffee
          Yes, that's what common sense would say. But they are only conservative government in the world that keeps on raising consumption tax to stunt economic growth.
      Haji
      • 9 Months Ago
      ... and meanwhile cuts the supplier's cost by another 50% percent. another easy money for akio.
      knightrider_6
      • 9 Months Ago
      Those damn unions - helping Toyota make record $18 billion profit and getting a small share of that in return. I'm glad those anti union thugs conned people into voting against unions. /s
      usa1
      • 9 Months Ago
      Good to see Toyota is sharing the profits they've earned because of the currency manipulation under Prime Minister Abe.
        ctsmith1066
        • 9 Months Ago
        @usa1
        Most of Toyota's profit increase has actually come from income growth in developing countries.
        JYD
        • 9 Months Ago
        @usa1
        Japan is the last country among developed which increased the amount of money in circulation. Ever heard QE? Still Yen is stronger than it was before Lehman bother's bankruptcy. Furthermore, the rate of yen is manipulated by hedge funds than the government.
      Hi
      • 9 Months Ago
      low wage toyota sweat shop
      • 9 Months Ago
      [blocked]
      Butch Jones
      • 9 Months Ago
      It'll be most interesting how TEMA spins this with it's American workers. But they will likely say nothing.
      Melissa Brittany
      • 8 Months Ago
      Toyota raises Japanese base wages because Toyota 24% Jump in Third Quarter Sales...http://bit.ly/1eruiGy
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