Nominal wages in Japan rose 2.8% year-on-year in January 2025, slowing from a 4.4% gain in December and coming in below market expectations of 3.2%. January’s figure was also the lowest reading in three months. Meanwhile, inflation-adjusted real wages, which reflect consumer purchasing power, fell 1.8% in January from a year ago, ending two straight months of gains as inflation outpaced wage growth. The report came just days ahead of the culmination of the annual round of pay negotiations at the country’s major firms. Last week, Japan’s largest labor group said member unions were demanding an average 6.09% pay hike, their largest claim in more than 30 years. On the monetary policy front, the Bank of Japan is expected to hold interest rates steady at its March policy meeting as officials wait for more evidence of sustainable wage growth. source: Ministry of Health, Labour and Welfare, Japan

Wages in Japan increased 2.80 percent in January of 2025 over the same month in the previous year. Wage Growth in Japan averaged 3.00 percent from 1972 until 2025, reaching an all time high of 35.02 percent in July of 1974 and a record low of -7.10 percent in June of 2009. This page provides - Japan Wage Growth- actual values, historical data, forecast, chart, statistics, economic calendar and news. Japan Average Cash Earnings YoY - data, historical chart, forecasts and calendar of releases - was last updated on March of 2025.

Wages in Japan increased 2.80 percent in January of 2025 over the same month in the previous year. Wage Growth in Japan is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Average Cash Earnings YoY is projected to trend around 1.80 percent in 2026 and 1.70 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-02-04 11:30 PM
Average Cash Earnings YoY
Dec 4.8% 3.9% 3.8% 2.1%
2025-03-09 11:30 PM
Average Cash Earnings YoY
Jan 2.8% 4.4% 3.2% 3.5%
2025-04-06 11:30 PM
Average Cash Earnings YoY
Feb

Components Last Previous Unit Reference
Overtime Pay YoY 3.10 0.80 percent Jan 2025
Real Earnings Excluding Bonuses -1.80 0.30 Percent Jan 2025
Real Earnings Including Bonuses -1.80 0.60 Percent Jan 2025

Related Last Previous Unit Reference
Full Time Employment 23336.00 23346.00 Thousand Jan 2025
Job Vacancies 837.08 819.18 Thousand Dec 2024
Jobs/applications ratio 1.26 1.25 Jan 2025
Minimum Wages 1054.00 1002.00 JPY/Hour Oct 2024
Part Time Employment 7749.00 7834.00 Thousand Jan 2025
Retirement Age Men 65.00 64.00 Years Dec 2025
Retirement Age Women 65.00 64.00 Years Dec 2025
Average Cash Earnings YoY 2.80 4.40 percent Jan 2025
Wages 332594.00 741317.00 JPY/Month Jan 2025
Wages in Manufacturing 359246.00 889663.00 JPY/Month Jan 2025

Japan Average Cash Earnings YoY
In Japan, wage growth refers to changes in average cash earnings, including contractual and special cash earnings, in companies with five or more employees.
Actual Previous Highest Lowest Dates Unit Frequency
2.80 4.40 35.02 -7.10 1972 - 2025 percent Monthly
NSA


News Stream
Japan Nominal Wage Growth Slows More Than Expected
Nominal wages in Japan rose 2.8% year-on-year in January 2025, slowing from a 4.4% gain in December and coming in below market expectations of 3.2%. January’s figure was also the lowest reading in three months. Meanwhile, inflation-adjusted real wages, which reflect consumer purchasing power, fell 1.8% in January from a year ago, ending two straight months of gains as inflation outpaced wage growth. The report came just days ahead of the culmination of the annual round of pay negotiations at the country’s major firms. Last week, Japan’s largest labor group said member unions were demanding an average 6.09% pay hike, their largest claim in more than 30 years. On the monetary policy front, the Bank of Japan is expected to hold interest rates steady at its March policy meeting as officials wait for more evidence of sustainable wage growth.
2025-03-10
Japan Nominal Wage Growth Surges Amid Winter Bonuses
Nominal wages in Japan rose 4.8% year-on-year in December 2024, up from 3.9% in November, driven by a significant increase in winter bonuses. This exceeded market expectations of a 3.8% growth and marked the highest wage growth in nearly three decades. Inflation-adjusted real wages, which reflect consumer purchasing power, also increased by 0.6% in December, marking the second consecutive month of positive growth. The surge was largely attributed to a 6.8% rise in special payments, primarily from companies' winter bonuses. The Bank of Japan has emphasized the need for broad-based wage hikes to support higher borrowing costs. However, a labor ministry official noted, "Although monthly wages and base salaries are rising compared to the past, they are not keeping pace with prices."
2025-02-04
Japan Nominal Wage Growth Tops Forecast
Nominal wages in Japan rose by 3% year-on-year in November 2024, marking an acceleration from the 2.6% increase seen in October and surpassing market forecasts of 2.7%. However, real wages—adjusted for inflation and a key indicator of consumers' purchasing power—fell by 0.3% year-on-year in November. This follows a 0.4% decline in October and represents the fourth consecutive month of negative real wage growth, despite base pay rising at its fastest pace in over three decades. These figures complicate the outlook for the Bank of Japan's monetary policy, as the central bank has stressed that broad-based wage increases are essential to justify raising borrowing costs. Looking ahead, Japanese companies are expected to raise wages by approximately 5% in 2025, matching the increases seen in the previous year.
2025-01-08