Japanese companies agreed to raise wages by an average 5.01 percent in this year's spring wage negotiations, marking the third consecutive year of pay increases of over 5 percent, the country's largest labor union said Friday.
The Japanese Trade Union Confederation, also known as Rengo, said its final tally of wage negotiation results from over 5,300 member unions showed the average monthly pay hike stood at 16,400 yen.
Consumer spending remains sluggish in Japan, with wage growth having lagged behind price increases until recently. Japan's real wages rose for the fourth straight month in April. But a surge in oil and raw material costs stemming from the Middle East conflict threatens to accelerate inflation.
The pace of wage growth slowed from the previous year's average increase of 5.25 percent.
"We accept the result as a step forward toward a society where pay raises are normal," said Akira Nidaira, an assistant general secretary at Rengo, at a press conference, adding that smaller firms did what they could.
Wages at small- and medium-sized companies increased by an average of 4.69 percent, or 12,866 yen, even though they still lagged behind the pace of increases at larger firms.
The figures are based on wage negotiation results from 5,368 unions as of Wednesday.
© KYODO
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Taciturn
My boss obviously didn't get the memo.
ShinyAndChrome
LOL. 90% of bosses didn't get the memo! :-)
This is classic Kyodo: That article sounds like everyone got a 5% payrises, but it is misleading:
That 5% pay rise only went to members of the trade union Rengo who represents about 10% of Japanese workers who are mostly full-time and belong to big companies like Toyota who can afford a wage hike. The article also claims wages went up 4.69% at SMEs, but they are only talking about Rengo SMEs!
The headline should be So the article should be *"5% for 3rd straight year FOR RENGO WORKERS"*
Trade unions are good. More Japanese should be in them. And Kyodo should print both sides of their stories:
"The 2026 Shuntō wage hike averaged 5.26% — three consecutive years above 5% — yet 2025 real wages fell 1.3% YoY, marking four straight years of decline Roughly 4 percentage points of the raise are absorbed by inflation, rising social insurance premiums, and a newly introduced child-support levy, leaving an estimated net gain of only +1.3% 48.4% of SMEs say a ¥1,500 minimum wage is "impossible," while labor-cost-driven bankruptcies surged 77.2% to 195 cases"
https://isvd.or.jp/en/columns/2026-05-01-wage-hike-real-wage-paradox-2026
https://news.futunn.com/en/post/75513226/japan-s-shunto-wage-negotiations-officially-conclude-salary-increases-exceed
You can get real wage data here: https://www.mhlw.go.jp/toukei/list/30-1a.html
Newgirlintown
“The headline should be So the article should be *"5% for 3rd straight year FOR RENGO WORKERS"”
Oh, well done. Back of the net.
kurisupisu
Yes, the yen anaemic as usual and MOST Japanese can’t afford to buy anything but instant ramen and secondhand clothes.
I am living in Japan and have opportunities to travel.
What do I notice?
More foreigners in the Shinkansen Green Car than Japanese.
On planes: More foreigners in higher classes.I usually pay for a reserved seat on planes and notice the lack of Japanese.
70% of the time my seating row is vacant flying in or out of Japan.
High class hotels are booming but the customers are not Japanese.
Restaurants are full of tourists taking advantage of the weak yen.
Even Korean wages are storming ahead and higher than Japan’s on average.
Compare Tokyo’s staid architecture with Bangkok and notice the energy emanating from the buildings and the fresh innovative designs.
Higher wages in Japan says Kyodo.
Jokers!
Aly Rustom
Agree with all the above.
Newgirlintown
“More foreigners in the Shinkansen Green Car than Japanese.”
Oh, boo hoo. Hurts when the shoe’s on the other foot and you’re turning into the Thailand of Asia, doesn’t it?
WoodyLee
Excellent.
dan
This is propaganda!
Only the big companies like Toyota , Aisin + Denso are upping wages !!
tora
You know what they say about lies and statistics.
IVO
it may looks nice on paper.
reality is very different.majority did not get any extra money at all,while inflation made income lower/in reality/...
but yes hatarake gambare...gaman..we all know this well.
sakurasuki
Wage increase 5%, rice price already increase 100%, double its price.
https://www.cnbc.com/2025/06/20/japans-core-inflation-hits-highest-level-since-jan-2023-putting-pressure-on-boj-to-raise-rates.html
Blacklabel
When 5% is like 12,000 yen it’s kinda useless.
WuzUrPCGuy
I agree with everyone here. My wife said, "Hidoi Kuni desu ne!". Yep. And Toyota is taxing people in Ca! Jeeezzzzzz