Japan's real wages fell 1.8 percent year-on-year in January, marking the first decline in three months, according to preliminary data from the Ministry of Health, Labour and Welfare released Monday.

The decline was the steepest since March 2024, as rising prices outpaced wage growth.

The nominal total cash earnings per worker, including base and overtime pay, rose 2.8 percent to 295,505 yen (about $2,009), extending a 37-month streak of gains, the data showed.

Scheduled wages, which include base salaries, grew by 3.1 percent that reflected companies' wage hikes. But inflation driven by soaring food prices such as rice and cabbage has outpaced wage growth.

Among industries, mining and quarrying recorded the highest wage growth at 17.1 percent, while personal services grew by 6.0 percent.

For real wages to turn positive, the focus has been centered on the upcoming spring wage negotiations, which will see whether pay raises extend beyond large corporations to small and medium-sized businesses.

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