Latest Trends in Summer Bonuses Over 5 Years: Average Rises to 457,000 Yen - Comparing Japan's Unique Bonus Culture with the World

1. Introduction: Why Summer Bonuses Make the News

In Japan, "bonuses" are deeply integrated into the salary system. Companies typically provide lump-sum payments to employees twice a year, in June to July and December. The impact on household budgeting, consumer sentiment, and the regional economy is significant, which is why the amount distributed is reported in the news every year.

2. Overview and Key Figures of the 2025 Survey

• Survey Conducted by: Teikoku Databank

• Survey Period: June 6-10, 2025

• Number of Responding Companies: 1,227 companies

• Average Payment Amount: 457,000 yen (an increase of 18,000 yen from the previous year)

• Percentage of Companies Increasing Bonuses: 33.7%

• Business Outlook: Strong domestic demand despite inflation and favorable conditions for export companies due to a weak yentdb.co.jp
  
  
  

Characteristics by Company Size

Key Point: The difference in increase rates is due to large companies being able to pass on costs and secure overseas profits more easily, whereas small companies are often caught between rising raw material costs and increasing labor expenses.

3. The Wage Increase Movement in the Background

During the 2024-25 spring labor negotiations, many major companies implemented regular pay raises plus base pay increases. According to a summary by the Institute for Comprehensive Labor Policy, the average wage increase rate among the top 100 companies was **3.8%**, while the Consumer Price Index (CPI) hovered around 4%. The increase in bonuses plays a role in supplementing real wages.

4. Differences in "Bonus Culture" Seen in International Comparisons

4-1. Why Japan Has Two Bonuses, "Summer and Winter"

During the post-war reconstruction period, companies suppressed salaries due to cash flow issues, and the practice of distributing surplus profits after financial settlements became established—this is the prototype of the summer and winter bonuses.

4-2. Advantages/Disadvantages Compared to Overseas

• Advantages: Regular lump sum payments make household budgeting easier

• Disadvantages: Risk of significant cuts or zero payments during business downturns
  
  
  
  

5. By Industry: Which Sectors are Increasing

• Manufacturing (Automotive/Electronics): Increasing trend due to yen depreciation benefits and North American demand

• Construction: Increased due to infrastructure redevelopment demand, but labor shortages are pressuring costs

• Retail/Food Service: Reflecting minimum wage increases, but profit margins remain flat

• IT/Gaming: Increased to prevent talent outflow + combined with stock options
  
  
  
  

6. Four Points Foreign Workers Should Know

1. Bonuses should be checked in work regulations - Frequency of payment, calculation method, and employment requirements are written

2. Income tax is not separate taxation - Withheld as salary income

3. Social insurance premiums are also deductible - Take-home pay is approximately 80% of the gross amount

4. Be cautious of job change timing - If you don't meet the payment criteria date (e.g., employed on June 30), you won't receive it
   
   
   
   

7. Impact on Household and Consumer Sentiment

According to Mizuho Research, a bonus increase of 10,000 yen boosts personal consumption by 40 billion yen annually. The current increase of 18,000 yen has a potential effect ofapproximately 720 billion yen.

8. Risk Management of Bonus Cuts

• It is common for employment contracts to specify "consideration of business performance"

• During the Lehman Shock period, even major manufacturers experienced halving and freezing of bonuses

• Companies with high dependency on variable pay (e.g., securities, real estate) should be cautious
  
  
  
  

9. Summary and Outlook

Amidst ongoing inflation and competition for talent retention, the summer bonuses in 2025 resulted in "30% of companies increasing their bonuses."

• The gap between large companies and small and medium-sized enterprisesis widening

• The importance of bonuses as a support for real wagesis increasing

• For foreign workers, it is important to focus on the total compensation package, including bonus conditions, when choosing a company
  
  
  

In the future, government wage increase policies, inflation rates, and yen exchange rates will influence corporate surplus funds and affect bonus levels.

Reference Article List

• Teikoku Databank, Ltd. "2025 Summer Bonus Trends Survey" June 13, 2025 tdb.co.jp

• PR TIMES "30% of Companies See 'Increase' in Summer Bonuses, Average Payment is 457,000 Yen" June 13, 2025 prtimes.jp

• ShareWillow "Average Bonus Percentage in the U.S." November 2024 sharewillow.com

• Justworks "Which Countries Require 13th Month Pay?" October 2024 justworks.com

• South China Morning Post "China's viral year-end bonus buzz takes on a more pessimistic tone" February 2025 kinyu.co.uk

• eFinancialCareers "Banking bonuses: The situation in 2025" June 2025 efinancialcareers.com