TOKYO: Toyota said today it would raise the monthly base salary for workers by 4,000 yen (RM122), its biggest increase in over a decade, joining other major domestic firms in agreeing to larger rises in annual wage talks.

The rise was short of union demands for 6,000 yen (RM183) per month, but up from last year's 2,700 yen (RM82) hike. Earlier, electronics firm Panasonic and auto maker Nissan announced monthly base-pay rises of 3,000 yen (RM91) and 5,000 yen (RM152) respectively.

Higher wages are considered key to sustaining growth and decisively ending deflation in the world's third-biggest economy.

Prime Minister Shinzo Abe's government has been calling for Japan Inc - sitting on record levels of cash amid hefty profits - to do its part in stimulating the economy and lift workers' pay.