News On Japan

How Will People Spend Their Summer Bonus This Year

TOKYO - Summer bonus season is approaching, but with inflation remaining high, many are wondering how they will spend their extra income. A recent street survey gathered views on how people plan to use their bonuses.

Among companies planning to pay or increase bonuses, 38.4% of large firms and 33.0% of small and medium-sized companies (including 27.0% of small businesses) reported increases. The average bonus per full-time employee stands at 457,000 yen, up 18,000 yen from the previous year.

Some companies remain cautious, such as one information service firm that cited uncertainty over potential Trump-era tariffs. "We're holding back this summer due to the unclear outlook. If tariffs don't impact us, we may compensate for the lower summer payout with a higher winter bonus," a company representative said.

In a street interview by N-STA, one person shared that they spent 120,000 yen on a sofa. But overall, how are most people planning to spend their summer bonuses?

According to a survey by household finance advisory service Okaneko, the most common uses for summer bonuses are: savings and deposits at 65%, asset building such as NISA or real estate investment at 49.3%, travel and dining at 28.1%, and daily living expenses also at 28.1% (multiple answers allowed).

Banks are also launching limited-time offers to attract bonus deposits. Tokyo Star Bank is offering an annual interest rate of 0.91% for one-year deposits through internet banking for amounts starting at 500,000 yen, available until the end of June. SBI Shinsei Bank has raised its rates to 1.10% annually for five-year deposits from June 13, for internet customers investing at least 300,000 yen.

As for personal investment strategies, Inoue shared his approach: "I allocate 80% to asset building and keep 20% aside, but I don’t have any particular use for it. Do comedians have something similar to a bonus?"

Matsui Kemuri from Reiwa Roman replied: "We don't get bonuses as such, but maybe prize money from competitions is close. For example, I won the M-1 Grand Prix two years in a row in 2023 and 2024. I gave all the 10 million yen prize money from 2023 to my partner Takahira Kuruma. The 10 million yen I won in 2024 came in a few months ago, but I’ve mainly been spending it on younger colleagues, taking them on trips or covering their drinks. I see investing in juniors as a kind of asset building."

In some companies, bonuses are still handed out in cash to express personal gratitude directly. In Tokyo, one company’s president has been personally handing bonuses to employees since its founding. However, there was once an incident where one yen went missing, prompting the company to recount around 200 envelopes to find the missing coin. With the company’s growth, cash payments are now limited to winter bonuses. Until 2018, even salaries were handed out in cash.

Inoue commented, "That must be tough, but it might foster a stronger sense of unity." Matsui added, "Some talent agencies still pay in cash occasionally. I think Ohta Production was doing it until fairly recently." Announcer Izumi Mai noted, "When the envelope gets thicker, it really feels like you’ve worked hard." Matsui joked, "I hear some high earners get nervous carrying it home." When Inoue asked Matsui how much he earns, Matsui laughed: "I’m not saying that. Don’t try to turn this into a news scoop."

Source: TBS

News On Japan
POPULAR NEWS

Two typhoons moving across the Pacific southeast of Japan are expected to remain well away from the Japanese mainland, but powerful swells could bring rough seas to a wide stretch of the country's Pacific coastline throughout the three-day holiday weekend, according to forecasts updated at 3 a.m. on October 10.

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

Tokyo University of Science professor emeritus Kenzo Soai has been awarded this year's Nobel Prize in Chemistry together with French chemist Henri B. Kagan for discoveries that transformed scientists' understanding of how chemical reactions can favor one of two mirror-image forms of a molecule.

The US military suspended activities by all forces stationed in Okinawa for 48 hours from noon on October 7, an unusual measure following the arrest of a US Marine in connection with a robbery and murder case that has renewed scrutiny of crimes involving American service members.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

Tokyo stocks fell on October 7, with the Nikkei 225 closing at 70,036, down 648 points, as investors took profits in semiconductor and artificial intelligence-related shares after the index’s rapid climb above 70,000 earlier in the week.

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.