Wage increases jump back to pre-IMF levels

This year, agreed wage rate increases at companies where wage negotiations have been consummated seem to have bounced back to pre-IMF levels.

According to the `Wage Negotiations Status` report revealed by the Ministry of Labor on the 3rd, as of the end of July, 64% of 5,116 companies with over 100 employees had finished the bargaining process and the average wage increase was 7.9%.

The wage increase rate and consummation rate for this period surpass the 1997 levels of 4.3% and 61%, respectively, and come close to matching the 1996 figures of 7.7% and 74.2%. Last year, the wage increase rate was 1.7%, and the consummation rate stood at 60.5%. Examining the wage increase rate by industry, the utilities sector recorded the highest rise at 13.7%, with manufacturing (8.8%) and social welfare (7.6%) trailing behind. The wage increase rate for the service sector was comparatively lower than the manufacturing sector, with the accommodations/food segment seeing a rise of 6.5%, finance/insurance 6.6% and educational services 6.4%.