Japan’s summer bonuses fall for third consecutive year

The survey by the Japan Business Federation found that the pandemic impacted businesses in the non-manufacturing sectors the most.
By: | August 10, 2021

Summer bonuses in Japan have fallen for a third consecutive year, based on a survey by Keidanren, or the Japan Business Federation.

The average summer bonus this year for workers was 826,647 yen (US$7,505), down 8% from its bonus in 2020. 

The survey, which collected responses of 159 firms with 500 or more employees listed on the first section of the Tokyo Stock Exchange, found that the pandemic impacted businesses in the non-manufacturing sectors the most, with bonuses in the industry experiencing the largest drop. 

The retail and railway sectors in particular saw bonus payments falling by 17%, which is the largest drop since 1997 when the business lobby began releasing the survey results. 

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Altogether, 11 industries saw a decline in the level of their summer bonuses. However, seven industries, which include the food and cement sectors, saw a rise in bonus levels. 

Japanese firms typically award their workers with bonuses every summer and winter, which usually fluctuate more than regular wages as businesses award their staff with one-off payments.