TOKYO, June 9 (Xinhua) -- Nearly 40 percent of Japanese companies reported year-on-year hikes in summer bonuses in 2023 for their employees as wages failed to catch up with rising prices, a research survey showed Friday.
Some 37.4 percent of surveyed companies have increased the average amount of 2023 summer bonuses offered to employees, according to the survey by Japan's Teikoku Databank.
Focusing on the bonus trend as the summer of price hikes approaches, the survey was conducted online from June 2 to 7, receiving valid responses from 1,095 companies.
The survey found that the larger the company size, the higher the percentage of the summer bonus increase.
The summer bonus offered per employee increased by 2.4 percent from the previous year. In a breakdown, large firms saw a 3.5-percent rise while small and medium-sized companies reported an increase of 2.2 percent, said the report.
The country's real wages, which reflect price fluctuations, decreased by 3 percent year on year in April, according to the preliminary monthly data from the Ministry of Health, Labor and Welfare.
This marked the 13th consecutive month of decline, which widened from the previous month's 2.3-percent drop.
More than 80 percent of surveyed enterprises have planned some form of additional pay in summer 2023, including bonus and lump-sum payments, addressing a recovery in business performance and the need to motivate their employees amid the pressing labor shortage and growing household burden, according to the report.
On the other hand, those that reduced bonus payments cited deteriorating earnings due to soaring raw material costs, among other factors.
"Despite the bonus increases proposed by many companies, their effect on consumption growth is expected to be limited due to the unstoppable price hikes," the report said.
Earlier this month, seven major Japanese electric power companies announced to raise their electricity rates.
The research company added that it might be more difficult to achieve sustainable wage and bonus increases amid the concern for further surges in corporate costs.
Japanese companies usually offer semi-annual bonuses to their employees. Summer bonuses are paid in June or July, and winter bonuses are paid in December. ■