Sompo Holdings Inc. plans to give a 1 million yen raise in annual salary in fiscal 2022 to about 1,000 core employees of a nursing care company it owns, according to sources.
The company is responding to a growing labor shortage amid greater demand for nursing care due to the graying of society. Pay raises will go to care leaders who work in housing facilities that provide long-term care services, elderly nursing homes, and home care service providers managed by Sompo Care Inc., which is owned by Sompo Holdings.
Salaries vary by such factors as the specific workplace and the allowances received in addition to the base income, but in general, annual incomes will rise from the 3 million yen level to the 4 million yen level. Sompo Holdings' goal is to provide pay similar to an average nurse's salary, which is in the high 4 million yen range.
The raises will be funded by improving profitability through further business expansion, the company said.
In 2019, Sompo Care raised salaries for a wide range of staff involved in nursing care by as much as 800,000 yen on an annual basis.
In tandem with the pay raises, core staff will be required to take on more specialized tasks.
The Sompo group currently manages a total of 452 fee-charging nursing homes and serviced housing complexes for the elderly.
It aims to add another 20 facilities over the next three years and increase income in the division from the current 130 billion yen to 160 billion yen. The company expects to add 33 new facilities in the next five years.
Many nursing care workers receive relatively low pay despite the rigorous nature of the job. The company hopes that by improving compensation as it expands, it can resolve its labor shortage and provide better service.
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