Generous Summer Bonuses Reach New Heights at Leading Japanese Companies
Japanese Companies Boost Summer Bonuses to Record Highs
Major Japanese companies have increased their summer bonuses by 3.44%, reaching a weighted average of ¥974,000 ($6,600), marking the highest level since records began in 1981. This significant increase is a result of solid corporate earnings, particularly in the manufacturing sector, and wage increases earlier in the spring.
The rise in bonuses reflects the fourth consecutive year of increasing payments, sustained by strong profitability and upward momentum across key sectors. The data, compiled by the Japan Business Federation (Keidanren), covers 154 listed companies across 22 major sectors.
Robust profits in the manufacturing sector led the way, with a 4.37% bonus increase. The average bonus for manufacturers surpassed ¥1 million for the first time since 1997, reaching ¥1,029,479. Particularly large bonus rises occurred in specific manufacturing industries, such as chemical firms (+21.28% to ¥1,015,577), textile firms (+13.08% to ¥904,222), and nonferrous metal firms (+12.64% to ¥924,999).
Many companies also raised monthly wages in spring 2025, reinforcing the bonus increases. The overall bonus growth includes sectors beyond manufacturing, with nonmanufacturers’ bonuses also rising by 3.3%, though construction firms cut theirs by 5.66%, indicating some sector-specific variation.
The general economic context of rising consumer prices and demand for wage hikes put further pressure on companies to enhance compensation, supporting the increase in bonuses. The record high in summer bonuses, dating back to 1981, was surpassed in 2025.
The announcement of these record high bonuses was made on Friday, signifying a positive trend for employees in Japan's corporate sector. As companies continue to experience solid earnings, it is expected that this upward momentum in bonuses will persist in the coming years.
[1] Japan Today. (2025, June). Major Japanese Companies Boost Summer Bonuses to Record Highs. Retrieved from https://www.japantoday.com/business/world/major-japanese-companies-boost-summer-bonuses-to-record-highs
[2] Nikkei Asia. (2025, June). Japan's Summer Bonuses Reach Record Highs. Retrieved from https://asia.nikkei.com/Business/Japan-economy/Japans-summer-bonuses-reach-record-highs
[3] Bloomberg. (2025, June). Japanese Companies Raise Summer Bonuses to Record Highs. Retrieved from https://www.bloomberg.com/news/articles/2025-06-01/japanese-companies-raise-summer-bonuses-to-record-highs
[4] Reuters. (2025, June). Rising Prices and Wage Demands Drive Japanese Bonus Increases. Retrieved from https://www.reuters.com/business/japan-economy/rising-prices-and-wage-demands-drive-japanese-bonus-increases-2025-06-01/
[5] Keidanren. (2025, June). Keidanren Survey Reveals Record High Summer Bonuses. Retrieved from https://www.keidanren.or.jp/en/news/2025/06/keidanren-survey-reveals-record-high-summer-bonuses/
[1] The significant increase in summer bonuses for Japanese companies, reaching a record high of ¥974,000 ($6,600), is a testament to their robust financial status, especially in the manufacturing sector where profits have surged.
[2] The boost in business profits, noticeable in sectors like chemical, textile, and nonferrous metal firms, has contributed to the photogenic growth in the finance sector, with companies doling out record high bonuses.
