Companies

Summer Bonuses at Major Japan Firms Hit 3-Year High

Yomiuri Shimbun file photo
The cityscape of Tokyo

Jiji Press

15:26 JST, August 10, 2023

TOKYO (Jiji Press) — The average summer bonus at major Japanese companies in 2023 topped ¥900,000 for the first time in three years amid soaring prices, a survey by the Japan Business Federation, or Keidanren, showed Wednesday.

The average amount rose 0.47 pct from a year before to ¥903,397, the sixth-highest level on records dating back to 1981, according to the final tally by the country’s biggest employers group.

The results came after this year’s “shunto” spring labor-management talks resulted in the largest monthly wage increase in 31 years.

The average summer bonus grew for the second consecutive year. “The momentum for wage hikes has been maintained,” a Keidanren official said.

The survey covered 161 companies in 19 industries.

At manufacturers, the average summer bonus rose 3.5 pct to ¥952,574, marking the second straight year of increase. Nonmanufacturers’ average shrank 6.24 pct to ¥777,293.

Ten sectors posted higher summer bonuses. Food makers saw the largest increase, jumping 14.58 pct, followed by shipbuilders, at 13.81 pct, and machinery and metals makers, at 13.11 pct.

On the other hand, nine sectors logged lower bonuses, including an 11.75 pct decline at electricity firms.