Japan Real Wages Up 1.4 Pct in May

Tokyo, July 7 (Jiji Press)–Japan’s inflation-adjusted real wage index rose 1.4 pct from a year earlier in May, up for the fifth consecutive month, labor ministry data showed Tuesday. The climb reflected robust nominal wage growth and a slower increase in consumer prices following the abolition of the provisional gasoline tax surcharge. The consumer price index excluding imputed rent, which is used to calculate the real wage index, rose 1.7 pct in May. The increase was slower than a 4.0 pct rise recorded a year earlier due to the scrapping of the provisional gasoline tax surcharge as well as lower prices for rice products. Nominal wages, including base pay and overtime, increased 3.2 pct to an average of 311,165 yen, rising more than 3 pct for the fourth month in a row, the labor ministry said in a preliminary report covering businesses with five or more employees. Regular pay, mainly comprising base salaries, rose 3.0 pct to 275,942 yen. Nominal wages for full-time employees, including regular workers, grew 3.5 pct to 400,312 yen, while those for part-timers were up 1.5 pct at 113,759 yen. Average hourly pay for part-time workers rose 4.9 pct to 1,452 yen. END [Copyright The Jiji Press, Ltd.]