Japanese Average Wage Increase Surpasses 5 Percent for 3 Consecutive Years

Japanese companies have agreed to raise average wages by 5.01 percent in this year's spring wage negotiations, marking the third consecutive year of salary increases of more than 5 percent.

The Japanese Federation of Trade Unions, also known as Rengo, said the final tally of wage negotiations from more than 5,300 member unions showed an average monthly wage increase of 16,400 yen ($135).

Consumer spending remained sluggish in Japan, with wage growth lagging behind price rises until recently.

Japanese real wages rose for a fourth consecutive month in April, but a surge in oil and raw material costs stemming from the Middle East conflict threatens to accelerate inflation.

The pace of wage growth slowed from the previous year's average increase of 5.25 percent.

"We accept this result as a step forward towards a society where salary increases are normal," said Akira Nidaira, assistant secretary general at Rengo, saying small companies had done their best.

Wages at small and medium-sized companies increased by an average of 4.69 percent, or 12,866 yen ($113), although they still lagged behind the rate of increase at large companies.

The figures are based on wage negotiations from 5,368 trade unions up to Wednesday.