Japan’s Real Wages Rise for Third Straight Month in March

May 08, 2026 | News On Japan

TOKYO - Japan’s real wages in March rose for the third consecutive month, supported by continued growth in base salaries and a slowdown in inflation, according to data released by the Health, Labour and Welfare Ministry.

Real wages, which reflect price fluctuations, increased 1.0% in March from the same month a year earlier, extending the positive trend for a third straight month.

Total cash earnings per worker, including base pay and overtime, climbed 2.7% year-on-year to 317,254 yen in March, marking the 51st consecutive month of growth.

Regular pay, or scheduled monthly earnings excluding overtime and bonuses, rose 3.2% from a year earlier. The increase marked the third consecutive month of growth above 3%, the strongest sustained pace in 33 years.

A ministry official said the gains were driven by rising base salaries following last year’s annual spring labor negotiations, as well as slower inflation compared with the previous year.

The data is likely to be closely watched by policymakers and the Bank of Japan as signs emerge that wage growth may be starting to keep pace with consumer prices after years of stagnant household purchasing power.

Source: TBS

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