Japanese workers see wage increase in August

Workers in Japan brought back a higher pay in August as compared to a year earlier, with average cash earnings per worker at almost 275,000 yen (US$2,414), up 0.7% year-on-year, marking the sixth consecutive month of increase. 

Although wages levels have been increasing, workers are still making less than they used to as compared to before the pandemic hit. 

Staff in the hotel and restaurant industries continue to experience pay declines, with lower salaries compared to last year and non-scheduled salaries down by 25%. Meanwhile, growth in overtime and other non-scheduled payments was at 6.5%.

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The country’s real wages rose for the second straight month in August by 0.2%, an indication of households’ purchasing power, the labour ministry said.  Regular pay, or base salary — which makes up most of total cash earnings and determines a wage trend — increased for the eighth consecutive month by 0.2%.