Japan’s average cash earnings rose 4.7% year-on-year in August 2026, exceeding the 3.9% market forecast and marking the strongest increase since January 1997. The gain accelerated from an upwardly revised 4% rise in July, taking monthly total cash earnings to ¥436,401. Regular pay, including base salaries, increased 4.1% to ¥301,582, its fastest growth since April 1992. Special payments such as bonuses rose 6.3% to ¥134,819, while overtime pay increased 3.1%, easing from a revised 3.4% gain in June. Wage growth was strongest in construction, mining, transport and postal services, information and communications, and manufacturing. Education and learning support was the only major sector to record a decline. Real wages increased 2.4% from a year earlier, extending their gains to seven consecutive months and posting their strongest increase since May 2021.