REPEAT: MNI: Japan Dec Wages Post 5th Rise; Real Wages Dip

--Japan Dec Average Wages +0.7% Y/Y, 5th Straight Rise

--Japan Dec Real Average Wages -0.5% Y/Y, 8th Drop in 12 Months

--Japan Dec Base Wages +0.6% Y/Y, 9th Straight Rise

--Japan Dec Overtime Pay +0.9% Y/Y, 2nd Straight Rise

--Japan Dec Special Pay +0.7% Y/Y, 5th Straight Rise

--Japan 2017 Average Wages +0.4%, 4th Straight Yearly Rise

--Japan 2017 Real Averages Wages -0.2%, 14th Drop in 2 Decade

     TOKYO (MNI) - Preliminary average wage data from the Monthly Labour Survey

released by the Ministry of Health, Labour and Welfare on Wednesday.

     * Total monthly average cash earnings per regular employee in Japan rose

0.7% on year to Y551,222 in December, posting the fifth straight year-on-year

rise after +0.9% in November, but real wages remained depressed.

     * In calendar 2017, average wages gained 0.4% from 2016, marking the fourth

consecutive year of increase, but real wages slipped 0.2% for the 14th drop in

the past two decades, indicating Japan has not completely overcome deflation.

     * In real terms, average wages fell 0.5% on year in December, marking the

eighth year-on-year drop in 12 months after rising 0.1% in November. Real wages

last posted a year-on-year rise (+0.1%) in December 2016. The weak trend was

caused by the recent increase in the cost of living, with the total CPI minus

imputed rents up 1.3% on year in December due to the recent surge in fresh

vegetable prices.

     * Base wages, the key to a recovery in cash earnings, rose 0.6% in December

from a year earlier, the ninth straight year-on-year rise after +0.3% in

November. Hourly base wages of regular employees working part time gained 2.1%

on year after +2.0% in the previous month while base wages for full-time workers

rose at a slower pace of 0.6% after +0.2% in November.

     * Overtime pay gained 0.9% on year in December after rising 1.9% in

November. It was the second straight year-on-year rise. Overtime working hours

rose 0.6% for the 12th consecutive year-on-year rise after rising 1.5% the

previous month. Regular working hours gained 0.4% on year, the third straight

increase after +0.1%.

     * Bonuses and other special pay rose 0.7% from a year before, marking the

fifth straight year-on-year rise after +7.9% in November.

     * Japanese policymakers have been urging firms to share more profits with

workers but firms are generally cautious about raising base wages amid

uncertainty over the outlook for global and domestic demand.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com