FX.co ★ Fluctuating Overtime Pay in Japan: May Sees Drop to 1.00%

In May 2025, Japan witnessed a slight contraction in overtime pay growth, with the current indicator stopping at 1.00%, down from 1.30% in April 2025. This decline marks a noticeable shift in overtime pay growth and could signify changing dynamics in the labor market.

This data, updated on July 6, 2025, highlights a year-over-year comparison for the month of May, revealing a slowdown from the previous month's year-over-year growth figure. Such changes may impact economic forecasts, reflecting potential shifts in worker demand or corporate financial strategies.

As businesses and employees adapt to this new wage growth landscape, the broader implications of this decreased overtime compensation increase will become clearer in the months to follow. The ongoing analysis and data on market trends and employee compensation will remain pivotal for stakeholders across Japan's economic sectors.