Average cash earnings in Japan rose 4.7% year-on-year in August 2026, beating market expectations of a 3.9% increase and marking the fastest growth since January 1997. The pace also exceeded the upwardly revised 4.0% gain recorded in July and remained above 3% for a sixth consecutive month, the longest such streak in 34 years.
Regular pay, including base salaries, climbed 4.1% to ¥301,582, the strongest increase since April 1992. Special payments such as bonuses jumped 6.3% to ¥134,819. Overtime pay advanced 3.1%, moderating from a revised 3.4% rise in June.
Wage growth was particularly robust in construction (13.5%), mining (12.6%), transport and postal services (8.3%), information and communications (6.2%), and manufacturing (4.8%). Education and learning support was the only major sector to see a decline, with wages down 2.2%.
Meanwhile, real wages increased 2.4% year-on-year, registering a seventh straight month of gains and the strongest rise since May 2021.
