Are Summer Bonuses in Japan at a Record High?

According to a survey by Nikkei, the average summer bonus in Japan in 2026 was ¥1,044,168, an increase of 4.49% from the previous year.

This was the first time the average payment exceeded ¥1 million, marking a record high for the fifth consecutive year. The average has also remained above ¥800,000 for five straight years.

Bonuses increased significantly at companies related to artificial intelligence (AI) and semiconductors, where business performance remained strong.

In contrast, growth was relatively limited in the automobile and retail industries, showing that bonus levels vary considerably depending on the sector.

In the construction industry, where labor shortages continue, more companies are increasing bonuses in an effort to recruit and retain talented employees.

However, it is important to understand that this survey covered only 396 companies, mainly listed corporations.

Across Japan as a whole, many companies do not pay bonuses at this level.

According to the Ministry of Health, Labour and Welfare’s Monthly Labour Survey, the average summer bonus in 2025 was ¥426,337. This is a more realistic figure for employees at many Japanese companies.

The gap in bonus payments between large corporations and small and medium-sized companies is believed to have widened over the past decade, particularly since the beginning of Abenomics.

From January to June 2026, the number of corporate bankruptcies reached 5,346, an increase of 7% from the same period of the previous year, according to Tokyo Shoko Research.

The number is rising toward levels seen around the time of the global financial crisis.

Period Overall Average Bonus Background
Late 1990s Approx. ¥430,000–¥440,000 Bonus levels remained relatively stable after Japan’s asset bubble collapsed but began to decline following the 1997 financial crisis, including the collapse of Yamaichi Securities.
Early 2000s Approx. ¥400,000–¥420,000 The collapse of the dot-com bubble and continued deflation placed downward pressure on bonuses. Before the global financial crisis, the average recovered to around ¥440,000.
2009–2012 Approx. ¥360,000–¥380,000 The global financial crisis and the 2011 Great East Japan Earthquake caused average bonus payments to fall sharply.
2013–2019 Approx. ¥360,000–¥380,000 Japan’s economy recovered under Abenomics, and bonuses at large corporations increased significantly. However, the nationwide average, including small and medium-sized companies, did not rise very much.
2020–2021 Approx. ¥380,000 The COVID-19 pandemic temporarily reduced bonuses, particularly in the restaurant, tourism, and hospitality industries.
2022–2025 Approx. ¥390,000–¥430,000 Wage increases became more common in response to rising prices. Average bonuses increased for four consecutive years.

Looking at the nationwide average, summer bonuses have only recently returned to levels close to those seen around the time of the dot-com bubble.

At the same time, an increasing number of companies are going bankrupt because they cannot withstand labor shortages or excessive pressure to raise wages.

Because of this situation, expecting an extremely high bonus may lead to disappointment when you experience the reality of working in Japan.

For reference, when I started working in 1995, my total bonuses for summer and winter were approximately ¥700,000.

I received around ¥150,000 in summer and ¥550,000 in winter.

The company was listed on the stock market and performing well, so my bonus was slightly above average. However, after income tax and other deductions, my actual take-home amount was approximately ¥600,000 in total.

Looking ahead, Japan faces challenges such as population decline and increasing fiscal pressure. The burden of taxes and social insurance contributions may become even heavier in the future.

With this in mind, it is important to carefully consider whether Japan is truly the best place for you to build your career.

When choosing a company, always check both the basic salary and the bonus system carefully.


By Hajime Saito
X: @hajimesaitoYJC

Sources
Nikkei (July 17, 2026)
Tokyo Shoko Research (July 8, 2026)

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