Updated

Updated · Nikkei Asia · Aug 18

Japan's Middle Class Loses 10% of Real Take-Home Pay Post-COVID as Taxes Outpace Raises

Updated

Updated · Nikkei Asia · Aug 18

Japan's Middle Class Loses 10% of Real Take-Home Pay Post-COVID as Taxes Outpace Raises

1 articles · Updated · Nikkei Asia · Aug 18

Japan's middle class has seen real take-home pay fall 10% since the pandemic, eroding purchasing power even after years of nominal wage increases.
Higher taxes and social security contributions drove the decline, while the tax code failed to adjust for inflation and pulled more income into heavier burdens.
Households have responded by cutting non-essential spending, including education-related outlays and entertainment, as everyday budgets come under pressure.
The slide underscores how inflation and fiscal drag are weakening consumer resilience in Japan despite headline pay gains.

Sources

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