Business / Economy

Wages in Japan see modest nominal growth

Kyodo

Japan’s real wages were flat in April from a year earlier, while nominal wages grew 0.8 percent for the ninth consecutive monthly increase amid a recent rise in base salaries, the labor ministry said Wednesday.

The average of total cash earnings, including base and overtime pay, per worker, rose to ¥277,272 ($2,500) on a nominal basis, according to the ministry’s preliminary data.

With Japan seeking to beat decades of deflation, the government has been encouraging company executives to raise wages so that spending becomes firmer and prices can be raised.

While average base pay and other scheduled wages grew 1.2 percent to ¥246,563, unscheduled wages including overtime pay gained 1.9 percent to ¥20,783, and bonuses and other special compensation payments dropped 9.8 percent to ¥9,926.

Overtime hours dropped 0.9 percent, marking a fourth successive monthly decrease.