Japan Nominal Wage Growth Strongest Since 1997
2026-11-05 23:37
By
Joshua Ferrer
1 min. read
Average cash earnings in Japan increased by 4.6% year-on-year in September 2026, accelerating from a slightly upwardly revised 3.9% gain in the previous month and marking the fastest growth since January 1997.
The latest result also exceeded market expectations for a 3.8% rise.
Regular pay, including base salaries, rose 3.7%, while overtime pay growth slowed to 3.6% from a revised 4.9% in the previous month.
In contrast, special payments, consisting mostly of volatile one-time bonuses, surged 32.6% following a revised 1.8% increase in August, although the labour ministry attributed the jump largely to a statistical quirk rather than a genuine increase in bonuses.
Wage growth was particularly strong in finance and insurance (12.5%) and academic research and professional services (8.5%), while living-related and personal services posted a 1.2% decline.
Meanwhile, real wages rose 2.2%, marking the ninth consecutive month of gains and accelerating from a revised 1.6% increase in August.