Group 1 - The Japanese government is set to implement the largest salary increase for civil servants in 34 years, with an average monthly basic salary increase of 3.62%, leading to a total salary increase of 5.1% for this year [1][2] - This salary adjustment will affect approximately 280,000 civil servants, which is seen as a positive development for the Bank of Japan as it seeks to establish a sustainable wage growth to support inflation [2][5] - The salary increase is influenced by the recent wage negotiations in the private sector, where companies have agreed to an average salary increase of 5.25%, marking the largest increase in 34 years [5][6] Group 2 - The Japanese government has been under pressure to provide competitive salaries in the public sector to attract and retain talent, especially in light of a declining population and difficulties in recruiting young professionals [5][6] - A report indicated that the number of recent graduates applying for public sector jobs has reached a historical low, prompting the government to propose an increase in starting salaries by over 5% [6][7] - The estimated cost of implementing the proposed salary increase for civil servants is approximately 334 billion yen (about 2.3 billion USD) [7]