"Received Bonus-Down Bonus"... Japanese Employees Cheer as Average Payment Reaches 8.9 Million Yen

Average Summer Bonus for Large Corporation Employees This Year 940,000 Yen
3rd Consecutive Year of Increase... A Positive Sign of Escaping Chronic Deflation

Employees of major Japanese corporations are expected to receive an average summer bonus of 8.9 million yen this year. This is the second highest level since 1981.

On the 8th (local time), Japanese economic media Nihon Keizai Shimbun (Nikkei) reported that the average summer bonus for employees of large companies, as compiled by the Japanese business organization 'Keidanren,' was estimated at 941,595 yen (approximately 8.9 million won). The companies included in this survey are 156 out of Japan's top 500 companies.

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This amount represents a 4.2% increase compared to the previous year and is the second highest level since the current bonus calculation method was introduced in 1981. Moreover, Japanese large corporations have raised bonuses for three consecutive years.

Regarding the reason for the bonus increase, Nikkei analyzed that "the base salary increase from the spring labor-management negotiations was reflected in the bonuses, and the weak yen contributed to improved corporate performance." The depreciation of the yen benefits the operating profits of exporting companies.

In addition, the wage increase rate is also showing signs of gradual growth. Keidanren announced on the 5th that the average wage increase rate for large companies through the Shunto (Japan's spring wage negotiations) reached 5.58%, surpassing 5% for the first time in 33 years since 1991 (5.60%).

Thanks to this, the real wages of Japanese workers (nominal wage increase rate minus inflation rate) turned to an upward trend for the first time in 27 months. According to the Ministry of Health, Labour and Welfare's announcement on the 6th, the real wages in June for businesses with five or more employees in Japan increased by 1.1% compared to the same period last year.

Due to deflation that has continued for decades, nominal wage increases in Japan have been minimal. Because of this, the Japanese government has actively encouraged escaping deflation and raising corporate wages.