Japan sees largest wage drop in April since Dec. 2009

Average inflation-adjusted wages in April for workers in Japan dropped 3.1 percent from a year earlier, marking the biggest year-on-year slide since December 2009, Japanese labor ministry said on Tuesday.

The ministry said the drop could be attributed to sales tax hike on April 1, which triggered price rises, although increasing number of companies raised wages this spring.

"The pay rise trend needs to be closely monitored until summer" as small and medium-sized companies are still working on pay negotiations, local media quoted the ministry as saying.

Average monthly pay for workers in Japan rose 0.9 percent in April from a year earlier to 274,761 yen (about 2684.96 U.S. dollars), due to increased overtime pay and bonuses, said the ministry.

On the contrary, average basic salary fell for the 23rd straight month, declining 0.2 percent to 243,989 yen (about 2384. 26 dollars), said the ministry.