Rengo, Japan's top labour federation, has called on its member unions for an minimum 1 percent base wage rise.
The Toyota union, which is covered by Rengo, is set to ask for a rise of 1.1 percent, or 4,000 yen (£24) per month, in the average base salary for Toyota workers, in addition to bonuses totalling 2.4 million yen and an incremental pay rise.
Toyota's domestic rivals, including Nissan Motor, Honda Motor and Suzuki Motor, are also under union pressure for a pay rise.
For Toyota, a 1.1 percent wage hike for an estimated 240,000 Japan-based employees, including its group companies, would add around 11.5 billion yen to its fixed-cost base, though this would be a tiny fraction of the 880 billion yen in additional operating profit that the global business expects to make in the year to end-March.
The company spent years relentlessly cutting costs, a trend unlikely to be reversed, and it also demands price-reduction on suppliers every six months, which generally run at 1-3 percent, industry sources said.
(Read more: Will 2% inflation be enough for Japan?)
Under a drive launched in 2012 to make its cars more competitive, Toyota is boosting use of standardised parts. Toyota says its intention is to introduce better functions across a wider range of models, and cost cuts are just one of the many means of improving its vehicles.
According to individuals familiar with the situation, this means Toyota is giving larger chunks of business to a smaller number of suppliers, and it is asking for cost cuts of 30 to 40 percent for some parts - in certain cases double that level.
A senior executive at a parts supplier for Toyota said the Aichi-based firm had managed to cut costs by 40 percent for some parts by redesigning products and switching to cheaper imported materials, and so far that made it more competitive.
"The question is whether we accept an even bigger cut. If we do so, then that soon becomes the norm, even if we are bleeding in dire red," the executive said.