Real take-home pay slides 10% post-COVID as tax code fails to factor in inflation
Households have cut back on non-essential spending such as learning and entertainment amid declining purchasing power. (Source photos by Nikkei)
KIU SUGANO
August 19, 2026 03:28 JST
TOKYO — The purchasing power of Japan’s middle class has declined substantially despite years of pay raises as higher tax and social security payments end up depressing take-home pay.