Japanese companies are again offering workers the biggest pay increase in three decades, the nation’s largest labor union group said.

The 5.46% preliminary reading from Rengo, a 7 million member-strong group, tops both last year's preliminary and final figures and is likely to mark the highest pay hike in 33 years.

By Makiko Yamazaki and Tom Bateman TOKYO (Reuters) -Japanese firms agreed to raise wages by more than 5% on average this year, on course for their most substantial pay hike in over three decades - a relief for many workers though it's unclear if the increases will lead to a meaningful jump in consumer spending.