Japanese corporate bonus and wage disparities

Data indicates a widening gap in compensation within Japan, specifically regarding bonuses and lifetime earnings. Large private corporations have seen record summer bonuses, with averages exceeding 1 million yen for the first time, partly due to a weak yen benefiting export industries and the need to address labor shortages.

This trend highlights significant disparities across different sectors. Compared to large-scale private firms, national public servants receive lower average summer bonuses and lower estimated lifetime income. Furthermore, a substantial gap exists between large corporations and small to medium-sized enterprises (SMEs), where median bonuses remain significantly lower. While SMEs have seen some growth in bonuses, they face challenges in wage competition, particularly for middle-aged employees, leading experts to suggest a focus on work environments and training to attract talent.

By 2026, this disparity has become a significant issue in the labor market. Keidanren data shows average summer bonuses for large companies exceeding 1 million yen, while statistics from the National Tax Agency and Furutsu-do Accounting reveal a stark divide. Employees at large firms with over 5,000 staff see average bonuses around 1.58 million yen, whereas those at businesses with fewer than 10 employees report much lower median values, near 267,000 yen. While large companies maintain consistent pay raises across age groups, SMEs struggle with stagnant wages for middle-aged workers as they prioritize younger staff to remain competitive.