Japan's biggest labor group has decided to demand a pay hike of at least 5 percent in next year's spring wage talks, aiming to ensure a stable pay rise for workers.

The Japanese Trade Union Confederation, or Rengo, adopted the goal in a central-committee meeting and made the announcement on Friday.

Rengo said base pay needs to go up at least 3 percent, with seniority-based raises covering the rest of the 5 percent-or-more hike the group wants next year.

As for small and midsize companies, Rengo plans to ask for a rise of at least 6 percent. That's in a bid to narrow the wage gap between smaller firms and big corporations.

Rengo would be asking for an increase of 5 percent or more for two years in a row.

Setting an even higher target for smaller companies would be a first since the wage talks in 2014.

Rengo President Yoshino Tomoko said while wage negotiations this year achieved a 5 percent-level raise for the first time in 33 years, consumer spending remains low. She spoke of the need for a constant increase in inflation-adjusted wages.