Japan's real wages rose 2.2% in September compared to the same month last year, extending a streak of growth to nine consecutive months. This marks the longest such run since a 12-month period from February 2016 to January 2017, according to government data released on Friday.
Nominal wages, which include base and overtime pay, increased 4.6% to 311,409 yen ($1,960) per worker. This is the largest rise since a 6.6% jump in January 1997. Special earnings, including bonuses, surged 32.6%, significantly boosting overall wage growth.
Consumer prices, used to calculate real wages, rose 2.4% in September, down from 3.4% a year earlier. A ministry official attributed the wage growth to pay increases secured during this year's spring labor negotiations, noting that wage growth continues to outpace inflation.
The recent gains follow a 12-month stretch of declining real wages from January to December 2025. Additionally, the Ministry of Health, Labor and Welfare reported that summer bonuses paid between June and August rose 5.3% from a year earlier to 448,765 yen, marking the fifth consecutive year of increases. The share of establishments paying bonuses also edged up to 74.0% from 73.4%.