Japanese workers' pay rose at its fastest pace in almost 30 years in September, government data showed on Friday, strengthening expectations that the Bank of Japan will raise interest rates again in December.

Nominal wages, or total cash earnings, increased 4.6% from a year earlier to an average of 311,409 yen (about $1,973) per worker, according to Japan's labour ministry. It was the largest annual gain since January 1997, and well above the 3.9% rise recorded in August and the 3.8% increase economists had expected.

Real wages, which adjust pay for inflation, rose 2.2% year on year, accelerating from a revised 1.6% gain in August and beating forecasts of 1.3%. It was the ninth consecutive month of real wage growth, the longest run since a 12-month stretch between February 2016 and January 2017, offering fresh evidence that household purchasing power is improving.

Regular pay, made up mainly of base salaries, rose 3.7%, roughly in line with August, and has now grown by at least 3% for nine months in a row. Base pay for full-time workers rose a record 3.1%, a measure economists watch closely because it strips out bonuses, overtime and sampling distortions.

The headline figure was flattered by a 32.6% jump in special payments, which the labour ministry described as a statistical quirk rather than a genuine surge in bonuses. Even so, the underlying trend was firm: the annual spring wage talks, known as shunto, lifted base pay, while the inflation rate used to calculate real wages rose only modestly, to 2.4% from 2.2%.

The figures support the Bank of Japan's case for further tightening. More than 80% of economists surveyed by Bloomberg expect another rate rise at the bank's meeting on 18 December, as policymakers look for sustained wage growth to underpin consumption and durable economic growth.

[Source: 985theriver.com](https://985theriver.com/2026/11/05/japans-real-wages-rise-for-ninth-month-in-september-backing-boj-rate-hike/) | [Source: qazinform.com](https://qazinform.com/news/japanese-real-wages-grow-22-in-september-extending-growth-streak-670def)