FX.co ★ Japan Nominal Wage Growth Tops 3% for 7th Month

Average cash earnings in Japan rose 3.8% year-on-year in August 2026, slightly above market expectations of a 3.7% increase but slower than the revised 4.3% gain recorded in July. This marked the 56th consecutive month of nominal wage growth and the seventh straight month with growth above 3%, the longest such streak since 1992.

Regular pay, including base salaries, increased by 3.8%, indicating continued solid wage momentum, while overtime pay accelerated, climbing 5.2% after a revised 4.5% rise in July. In contrast, special payments—mainly one-off bonuses—were flat, following a revised 5.3% jump in the previous month.

Wage gains were particularly pronounced in finance and insurance (9.7%), electricity and gas (7.7%), and information and communications (4.8%), whereas wages in living-related services fell 2.1%.

Meanwhile, real wages increased 1.5%, extending their run of gains to eight consecutive months—the longest in nearly a decade—though the pace eased from a revised 2.0% rise in July.