News On Japan

Japan Summer Bonuses Reach Record 1.04 Million Yen

TOKYO - The average summer bonus paid by major Japanese companies rose above 1 million yen for the first time, reaching a record 1,042,537 yen as strong corporate earnings and substantial wage increases lifted employee compensation.

The Japan Business Federation, known as Keidanren, released its final survey results covering 163 major companies, showing that the average bonus increased 7.04% from the previous year.

The figure was the highest since comparable records began in 1981.

Average bonuses at manufacturers rose 6.23% from the previous year to 1,093,629 yen, while payments at nonmanufacturing companies increased 8.96% to 941,145 yen.

Annual spring wage negotiations resulted in pay increases exceeding 5% for a third consecutive year as labor unions sought compensation for rising prices and employers aimed to secure workers.

The higher settlements are believed to have boosted summer bonuses because the payments are generally calculated based on employees' basic salaries.

Source: TBS

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