Overview
- Inflation‑adjusted pay fell 0.1% year on year in December, the 12th consecutive monthly drop.
- Real wages declined 1.3% in 2025, extending a four‑year slide despite rising nominal pay.
- Average monthly cash earnings rose about 2.3% last year, while consumer prices climbed 3.7%, eroding purchasing power.
- Nominal pay increased 2.4% in December, but overtime pay growth slowed to 0.9%, hinting at softer labor demand.
- After lifting its policy rate to 0.75% in December, the BoJ faces reduced pressure to hike again as attention turns to spring wage talks and whether gains spread beyond major firms that agreed to 5.39% raises in 2025.