Summer Bonuses at Major Japanese Firms Down 6 Pct

Economy

Tokyo, June 17 (Jiji Press)--The average bonus at major Japanese companies this summer will fall 6.0 pct from a year before to 925,947 yen due to the coronavirus pandemic and a slowdown in the global economy, the Japan Business Federation, or Keidanren, said in a preliminary survey report Wednesday.

The summer bonus decline is the steepest since the plunge of 19.4 pct in 2009 amid the global financial crisis and the third sharpest since the current tallying method started in 1980.

The first-round tally covered 86 Keidanren member companies, most of which decided this year's summer bonuses by mid-March. The final tally, scheduled for release in late July, is likely to show a deeper fall in the average due to a greater impact of the pandemic.

Bonuses average 900,960 yen at 79 manufacturers, down 5.1 pct, and 1,079,915 yen at seven nonmanufacturers, down 9.9 pct.

Of the 14 industry sectors surveyed, the steel sector saw the sharpest decline, of 25.0 pct to 569,679 yen, reflecting a series of suspensions of blast furnaces due to sluggish demand.

[Copyright The Jiji Press, Ltd.]

Jiji Press