Toyota Motor workers in Japan will receive a monthly increase in base pay of 10,700 yen ($96), lower than what unions were requesting, Jiji Press reported on Wednesday.

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Prime Minister Shinzo Abe`s administration has been urging Japan Inc to boost pay in an effort to drive the economy and conquer deflation.

But major companies are expected to offer smaller increases this year at annual wage talks on Wednesday amid concerns about the global economy and a looming sales tax hike at home, according to a Reuters survey.