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Rengo Final Tally Shows Average Pay Rise of 5.01% in 2026

The sustained wage gains strengthen the Bank of Japan's case to continue raising interest rates.

Overview

  • Rengo's final tally released on July 3 shows workers at 5,368 affiliated companies secured an average pay increase of 5.01 percent for 2026.
  • This result marks a third consecutive year with average increases at or above Rengo's 5 percent target, following 5.25 percent in 2025 and 5.10 percent in 2024.
  • Rengo represents about 7 million workers, roughly 10 percent of Japan's labor force, and its aggregate figure typically falls as smaller firms report later in the season.
  • The group said the average monthly raise equates to about 16,400 yen and that small- and medium-sized firms posted a lower average rise of 4.69 percent.
  • Analysts and media say the multi-year wage gains support further BOJ tightening because higher pay can lift household incomes and feed into inflation while rising energy and raw material costs add upside risk to prices.