The inflation-adjusted real wage index in July increased by 0.4% compared to the previous year, marking two consecutive months of growth. This can be attributed to the widespread effects of salary increases, according to an announcement made by the Labor Ministry on Thursday.
However, it is worth noting that the rate of rise has decreased from June’s figure of 1.1%. In June, bonus payments significantly boosted wages and contributed to a higher rate of increase.
On average, monthly nominal wages per worker rose by 3.6% to ¥403,490, continuing its upward trend for 31 consecutive months. The largest increase in regular pay including basic salary was recorded at 2.7%, which is the highest in over three decades since November 1992. This reflects the historic wage hikes agreed upon during this year’s “shunto” spring wage negotiations.
Special pay including bonuses also saw growth at a rate of 6.2%, although this represents a slowdown compared to June’s growth rate of 7.8%.
The consumer price index (excluding imputed rent), which is used to calculate the real wage index, increased by 3.2%.
For full-time workers including regular employees, average nominal wages grew by 3.6% to ¥529,266 while part-time workers experienced a rise of 3.9% with their average monthly wages reaching ¥114,729 . Additionally, there was a slight increase in monthly work hours per person by 0.6%.
An official from the ministry expressed concerns that it may become challenging for real wages to continue rising in August as bonuses lose their impact.
However, there is hope that consumer prices may decrease starting in September due to government subsidies for electricity and gas bills being reinstated which could potentially help boost real wages once again.