Japan's biggest business lobby has called for steady salary increases for workers to help the economy grow.
The policy is part of the Japan Business Federation's guidelines for managers in upcoming spring wage negotiations.

Salaries in Japan have climbed for two years straight. But the group also known as Keidanren says these increases need to be sustained to fully shake off years of deflation.

Keidanren adds that this view needs to be embraced by small- and medium-sized companies and firms supplying temporary staff. Smaller businesses employ nearly 70 percent of Japan's workers.

Large businesses are reportedly ready to raise salaries as much as 7 percent next year. But this has generated concern the wage gap with smaller firms will widen.

The lobby group says that for smaller companies to keep up with this wage hike trend, they will need to pass on the higher costs into the prices of products and services.