Tokyo, March 7 (IANS): Japanese workers' real wages in January shrank for the 22nd straight month, as salary gains continued to fall short of outpacing inflation, government data showed on Thursday.

Inflation-adjusted real wages were down 0.6 per cent from a year earlier, following a revised 2.1 per cent fall in December, logging their smallest decline in 13 months on weakening price pressures, according to the Ministry of Health, Labor and Welfare.

Nominal wages, the average total monthly cash earnings per worker including base and overtime pay, grew 2.0 per cent year-on-year in January to 282,270 yen ($1,900), up for the 25th consecutive month, the data showed, Xinhua news agency reported.

Average base pay and other scheduled wages went up 1.3 per cent to 269,359 yen, while overtime pay and other nonscheduled wages edged up by 0.4 per cent to 18,604 yen.

The country's wages are seen as a major indicator whether a cycle of pay increases above inflation is likely to be established, factors the central bank considers in phasing out its massive stimulus programme.

The Japanese Trade Union Confederation, or Rengo, said it aims to negotiate pay hikes of 5 per cent or higher, Kyodo news reported.

Though some major companies have announced big increases, with automaker Honda Motor Co. agreeing to a 5.6 per cent annual pay hike, it remains to be seen whether medium-sized and small businesses, which employ around 70 per cent of the country's workforce, will increase wages.