The parent company behind the global textile retailer Uniqlo, Fast Retailing Co., Ltd., has announced a comprehensive review of its compensation framework set to begin in March. The initiative is expected to yield salary increases of up to 40 percent for employees based in Japan.
In a public statement, the multinational group outlined plans to overhaul the pay structure significantly and to reassess its human resources system, with a strong emphasis on Japan where prevailing wage levels have historically been modest. The aim is to reward staff more fairly for their growth, ambition, and ability to contribute to the business’s success.
Concretely, the company will redefine roles by identifying the key abilities and requirements for each category and level. It will elevate the remuneration associated with the education and job level allocated to each employee by up to 40 percent.
The compensation package will include elements such as base salary and performance bonuses, while some job-based allowances currently used in Japan will be eliminated as part of the simplification process.
The changes apply across the organization, covering both headquarters personnel and store employees, and are expected to drive stronger personal development and corporate growth. The company believes these adjustments will enhance global competitiveness by aligning rewards with performance and potential.
As a result, the monthly salary for a newly hired university graduate in Japan is projected to rise from 255,000 yen (about 1,800 euros) to 300,000 yen (roughly 2,116 euros), representing an increase of around 18 percent. For those stepping into a store manager role in their first or second year, the monthly figure is expected to grow from 290,000 yen to 390,000 yen (about 2,046 to 2,750 euros), a rise of approximately 36 percent. Across the board, other employees are set to see annual salary increases of up to 40 percent as part of this initiative.