Tokyo, August 01: Summer bonuses at Japan’s leading companies saw the largest year-on-year fall this fiscal with a record 17.15 percent decline from a year ago, according to Japan Business Federation.
The current drop is the sharpest on record for both summer and winter bonuses since 1959 when the nation’s most influential business lobby known as Nippon Keidanren began compiling relevant data.
As per Keidanren’s survey, the average summer bonus declined for the second straight year amid the global economic downturn.
It is also the first time since 2002 after the information technology bubble collapsed that the figures have fallen below 800,000 yen.
The average bonus for manufacturers plummeted to 21.32 percent (733,880 yen) while that for non-manufacturers sagged to 3.47 percent (810,985 yen) for the second highest rate of decline.
Of the 19 industrial sectors, nine, including steelmaker’s and electrical appliance manufacturers, recorded their largest drops from previous year levels.
The bonus at automakers also saw a 27.77 percent dive to 761,951 yen due to slumping demand at home and overseas.
In contrast, the food companies saw an increase in their average summer bonus by 1.12 percent to 789,790 yen becoming the only sector that saw a rise from the previous year.
–Agencies