Overview

• Inflation-adjusted pay rose 0.5% year over year in July, the first increase since December, according to labour ministry data.
• Special payments including summer bonuses jumped 7.9%, providing the biggest lift to purchasing power.
• Regular pay grew 2.5%, the fastest pace in seven months, as total cash earnings increased 4.1% to 419,668 yen.
• The price index used for the real-wage calculation climbed 3.6% from a year earlier, remaining above the Bank of Japan’s 2% target.
• BOJ Governor Kazuo Ueda said wage gains are spreading beyond major firms, though potential fallout from U.S. tariffs remains a risk.