Japan Real Wages Rise 0.4% in July

Jiji Press

17:14 JST, September 5, 2024

TOKYO (Jiji Press) — The inflation-adjusted real wage index in July rose 0.4% from a year earlier, up for two consecutive months thanks to spreading effects of salary increases, the Labor Ministry announced Thursday.

But the rate of rise shrank from 1.1% in June, when bonus payments pushed up wages substantially.

Monthly nominal wages per worker went up 3.6% to ¥403,490 on average, up for 31 straight months. Of the total, regular pay including basic salary grew 2.7%, the largest increase in 31 years and eight months since November 1992, reflecting historic wage hikes agreed in this year’s “shunto” spring wage negotiations.

Special pay including bonuses climbed 6.2%, with the pace of growth slowing from 7.8% in June.

The consumer price index excluding imputed rent, used to calculate the real wage index, climbed 3.2.

The average nominal wages for full-time workers including regular employees grew 3.6%to ¥529,266 . Those of part-time workers rose 3.9% to ¥114,729 . Monthly work hours per person increased 0.6%.

An official at the ministry said that “it may become difficult for real wages to continue rising” in August as a boost from bonuses will dwindle.

Meanwhile, the resumption of government subsidies for electricity and gas bills is expected to push down consumer prices starting in September and may help lift real wages.