Japan average wages rise over 5 percent for third straight year

Japanese labor unions reported average wage increases of 5.01 percent in 2026 spring negotiations, marking the third consecutive year above 5 percent.

The Japanese Trade Union Confederation, known as Rengo, announced that its tally of results from 5,368 member unions showed an average monthly pay increase of 16,400 yen.

Although the pace slowed from last year's 5.25 percent average, small- and medium-sized firms still achieved gains averaging 4.69 percent. Rengo assistant general secretary Akira Nidaira described the outcome as a step toward making pay raises normal.

Real wages have risen for four straight months amid ongoing price pressures.

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Smaller firms in Japan raised wages by 4.29 percent in fiscal 2026, up from 4.03 percent the previous year.

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The weighted average summer bonus at major Japanese firms rose 1.88 percent from a year earlier to 1,008,706 yen, topping 1 million yen for the first time.

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