Summer Bonuses at Major Japan Firms Top 1 M. Yen for 1st Time

Tokyo, July 2 (Jiji Press)–Summer bonuses at major Japanese companies this year topped 1 million yen for the first time since comparable data became available in 1981, a survey by the Japan Business Federation, or Keidanren, showed Thursday. The weighted average amount of summer bonuses rose 1.88 pct from a year before to 1,008,706 yen, thanks to robust corporate earnings and base salary hikes. The initial tally from the country’s biggest group of employers covered 112 companies in 19 industries. The average increased year on year for the fifth straight year. The bonus data confirmed that the strong pay hike momentum remains in place, a Keidanren official said. Bonuses among 99 manufacturers averaged 1,060,434 yen, up 1.63 pct, and those among 13 nonmanufacturers 864,712 yen, up 4.01 pct. Fourteen industries posted rises. Of them, metal and nonferrous metal producers saw their average bonus soar 18.01 pct to 1,125,131 yen, due to strong earnings backed by growing demand for products related to data centers. The average rose 10.33 pct at food makers and 9.64 pct at shipbuilders. Meanwhile, bonuses fell in five industries, including the automobile sector, which saw the average bonus drop 8.97 pct to 997,155 yen owing to sluggish earnings at some firms. The average dropped 3.81 pct at steelmakers and 2.75 pct at the commerce sector including department store operators. END [Copyright The Jiji Press, Ltd.]