[ Nippon Keidanren ] [ Policy ]

Result of Survey on 2002 Summer and Winter Bonuses


May 30, 2003

Nippon Keidanren
(Japan Business Federation)

The Japan Business Federation released its Report on the 2002 Survey of Summer/Winter Bonuses on May 30. The results of the survey showed a year-on-year decline in the amounts of both summer/winter bonuses. However, in a breakdown of the distributions of those payouts, the amounts were higher for performance evaluation-based payments, and the proportion of companies that use performance-oriented systems for determining total bonus amounts was nearly 30%, the highest ratio ever recorded by the survey. These and similar results reveal a rise in the trend toward emphasis on employee skills and achievements.

Looking at the average bonus payouts across all industries, union members received ¥691,735 for the summer 2002 bonus (down 5.0% year-on-year), and ¥712,524 for winter (down 4.5% y/y). Non-union employees in responsible positions took in ¥1,228,840 for summer (down 5.6% y/y) and ¥1,247,899 for winter (down 4.4% y/y).

In terms of the systems used to determine the total bonus amount, 30.2% of the companies indicated that they use a performance-based system. This was a rise from last year's 20.9% and represented the highest ratio for this category since the survey was started in 1987. Of the companies that gave this response, 79.8% stated that they base bonuses on their current profit, while 9.0% base them on production and sales volumes, and 4.5% base them on value added.



Composition of Bonus --- (All Industries, Summer)
Total amount=100.0
Union membersManagerial personnel (not unionized)
Number of
companies
Fixed-amount
portion
Fixed-rate
portion
Portion
reflecting
performance
appraisal
Others Number of
companies
Fixed-amount
portion
Fixed-rate
portion
Portion
reflecting
performance
appraisal
Others
1998 244%
9.6
%
66.7
%
22.1
%
1.6
136%
11.8
%
49.6
%
37.1
%
1.5
1999 25511.360.825.72.2 13614.738.843.33.2
2000 21015.954.127.52.5 11416.336.844.72.2
2001 20613.361.123.81.8 10712.141.445.11.4
2002 24316.156.326.80.8 1471535.348.21.5

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