Large Japanese firms see 8% drop in summer bonuses
Major Japanese firms have seen their summer bonuses fall by 8.3% from the previous year to ¥826,647 (US$7,516) in 2021, according to the Japan Business Federation, or Keidanren.
The fall in summer bonus levels marks the third consecutive decrease, and the first time in four years that the average bonus has fallen under ¥900,000 (US$8,183). It is also the largest drop since 2009, when there was a marked decline of 17.2% in average bonus levels due to the global financial crisis.
The survey took into account the agreed bonuses of 159 firms listed on the Tokyo Stock Exchange, hiring over 500 employees. The railway sector was hit the hardest, with a 25.5% drop in summer bonuses for Japan Railways, and 18.6% for private railways as the pandemic led to a fall in rail travel.
The manufacturing sector also suffered a pronounced drop, declining by 17.0% (¥773,522). This is also the largest decrease since the survey began in 1997, writes Nippon news.
The industries of automobiles and construction also saw double-digit declines. However, compared to last year, the sectors of cement, food products and electricity saw increases in summer bonus levels.