Summer Bonuses at Major Japan Firms Log 1st Drop in 2 Yrs

Economy

Tokyo, June 11 (Jiji Press)--The average summer bonus at major Japanese companies this year declined 2.52 pct from a year before to 971,777 yen, down for the first time in two years, an initial tally by the Japanese Business Federation showed Tuesday.

Labor unions' requests to raise pay scales, rather than bonuses and other lump-sum payments, and sluggish growth in corporate earnings are thought to be factors behind the decrease, according to the tally by the federation, known as Keidanren.

"The momentum of wage increases is continuing" as the average figure surpassed 900,000 yen for the fifth consecutive year on an initial tally basis, a Keidanren official said.

The average bonus dropped 2.29 pct to 942,306 yen at 75 manufacturers and 3.31 pct to 1,340,275 yen at eight nonmanufacturers, according to the tally.

Of 15 industries covered by the tally, four saw an increase and 11 a decrease.

[Copyright The Jiji Press, Ltd.]

Jiji Press