Japan‘s inflation-adjusted real wage index fell 0.6% in August compared to the previous year, according to a preliminary report from the labor ministry. This decline can be attributed to higher prices in the country and reduced effects of summer bonus payments, which had significantly boosted real wages in June and July.
Nominal wages per worker, including regular and nonregular pay, increased by 3.0%, marking the 32nd consecutive month of growth. Within this total, regular pay (including base salary) saw a significant increase of 3.0%, the largest rise in over three decades.
Special pay, which includes bonuses, also experienced growth at a rate of 2.7%. However, this growth rate was lower than the previous month’s figure of 6.6%.
The consumer price index (excluding imputed rent), used to calculate the real wage index, rose by 3.5% in August compared to a rise of 3.2% in July.
The average nominal wage for full-time workers increased by 2.7% to ¥377,861 ($3,440), while part-timers saw a larger increase of 3.9% to ¥110,033 ($1,000).
It is expected that with the resumption of government subsidies for electricity and gas bills in September, there will be a slowdown in price growth.
A labor ministry official noted that wages in Japan are remaining stable and predicted that depending on future price trends, there is potential for the real wage index to turn positive again.