Average monthly pay at companies with at least five employees dropped 2.8 percent in November from a year earlier to ¥277,261, down for the 18th straight month, according to data released Monday by the labor ministry.

The drop in wages is continuing amid deflation and as companies remain cautious about the economic outlook, analysts say.

Of the total average, regular pay, including basic salary, dipped 1.0 percent to ¥245,336, while nonscheduled wages, including overtime pay, fell 5.7 percent to ¥17,782, the Health, Labor and Welfare Ministry's preliminary report showed.

Overtime hours slumped 9.5 percent to 9.7 hours on average in November. Overtime hours in the manufacturing sector, a key economic indicator, declined 9.1 percent to 12.9 hours.