Photo/Illutration The building housing the labor ministry in Tokyo’s Chiyoda Ward (Asahi Shimbun file photo)

Real wages per worker, which take higher prices into account, dropped 1.2 percent in May year on year, according to the labor ministry's monthly labor survey published on July 7.

That marked the 14th consecutive month that real wages have fallen. 

Nominal wages rose in May year on year, but not enough to catch up with the level of price increases, continuing the recent trend that wages have effectively continued falling.

“Cash earnings,” which is the same as the average monthly nominal wages, were 283,868 yen ($1,977), up 2.5 percent from the same month the previous year.

This was the first time this year that the percentage exceeded 2 percent.

Of May’s cash earnings, 252,132 yen was the average amount paid for normal working hours, including basic salary.

The amount marked a 1.8 percent rise year on year.

In this year’s annual spring wage negotiations, companies agreed to raise salaries by an average 3.58 percent, the largest hike in 30 years, data from Rengo (Japanese Trade Union Confederation) showed.

The average increase in base pay was 2.12 percent, according to Rengo’s member unions that released the figures.

“The results of the spring wage negotiations have started to be reflected in the actual wages,” said a labor ministry official.

Cash earnings for full-time work was 368,417 yen, on average, in May, up 3 percent from the same month last year, while the figure for part-time work was 102,303 yen, a 3.6 percent increase year on year.

The consumer price index, which is used to calculate real wages, has continued to rise significantly, marking a 3.8 percent increase in May year on year.

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