In February, Japanese real wages decreased for the second consecutive month due to increased inflation, as per data from the labour ministry in Tokyo. Concerns have risen in Japan regarding the potential impact of U.S. tariffs on the global economy and the country's fragile recovery. Prime Minister Shigeru Ishiba pledged to implement measures to support domestic industries affected by the tariffs. Real wages, adjusted for inflation, fell by 1.2% year-on-year in February following a 2.8% decline in January. The consumer inflation rate used for real wage calculations, excluding rent but including fresh food, rose by 4.3% compared to a 4.7% increase in January.

To alleviate the economic strain caused by the tariffs, Japan's ruling coalition and the opposition Democratic Party for the People (DPP) agreed to control gasoline prices. Base salary increased by 1.6% in February, slower than the 2.1% growth seen in January. Overtime pay, indicating corporate activity strength, rose by 2.2% in February following a revised 1.5% rise in January. Total nominal pay increased by 3.1% to 289,562 yen ($1,981) for the month, aided by a significant 77.4% surge in special payments, primarily comprising one-off bonuses.

Japanese companies have committed to an average pay raise of 5.4% this year, the largest increment in over three decades, according to Rengo, the largest union association in the country. The impact of Japan's annual spring wage negotiations typically reflects in wage data from April onwards.