For the first time on record, winter bonuses at Japan's major corporations have exceeded 1 million yen (about 9.31 million won). Experts said the results reflect a clearer virtuous cycle in which improved corporate performance leads to wage increases.
Keidanren announced on the 24th the results of agreements on year-end bonuses and lump-sum payments for 2025. The average payout among those surveyed—164 large corporations—came to 1,004,841 yen. That is up 8.57% from a year earlier and is the highest since comparable data began in 1981. This is the first time the average winter bonus has been in the 1 million yen range.
The survey targeted large corporations employing 500 or more workers. Japanese corporations typically pay bonuses twice, in summer and winter. The latest results cover winter bonuses paid at the end of this year.
News outlets said the bonus increase reflects a combination of improved corporate profitability and strong wage gains. An increase in corporations adopting performance-linked bonuses, which set payouts based on results, also pushed up the average. Keidanren said, "Wages and bonuses are steadily rising," adding, "There is strong momentum for wage hikes in Japan." Keidanren is Japan's largest business federation, whose members are major corporations, and it wields significant influence over Japan's economic policy.
By industry, the manufacturing institutional sector stood out. The average bonus at 125 manufacturers was 1,056,966 yen, up 10.09% from the previous year. By contrast, 39 non-manufacturing firms averaged 896,495 yen, a 5.78% increase, remaining below manufacturing.
Among detailed industries, construction recorded the highest payout at 1,354,639 yen. Although construction's payout fell 16.77% from a year earlier, it still retained the top spot across all industries. It was followed by machinery and metals at 1,249,434 yen. The automobile industry, which benefited from the weak yen, also saw a large rise. The average bonus at 12 automakers surged 17.25% from last year to 1,186,117 yen.
Some industries, however, saw bonuses decline due to weak results and other factors. Among those surveyed, a total of six industries recorded decreases in payouts. Information and communications fell 2.91% to 884,283 yen. The airline industry also dropped 3.60% to 732,053 yen.
Despite the record bonus increases, the challenge of a persistent compensation gap between large corporations and small and midsize firms remains. There are concerns that polarization could worsen if the warmth does not spread to smaller businesses while large corporations set a record high for bonuses. Japanese economic experts predicted that a recovery in domestic demand in Japan will be possible if wage increases spread to small and midsize firms.