Japan's Leading Companies Dish Out Remarkable Summer Profit Shares
In 2025, manufacturers in Japan experienced a significant boost in summer bonuses, with the average summer bonus reaching an impressive 1,029,479 yen. This marks the fourth consecutive year of an increase in summer bonuses, surpassing one million yen for the first time since 1997.
The record-high summer bonuses were driven primarily by solid corporate earnings, especially among manufacturers, coupled with wage increases implemented in the spring. The weighted average of summer bonuses for these companies was 974,000 yen—the highest since 1981.
The survey on summer bonuses, conducted by the Japan Business Federation, or Keidanren, covered 154 companies across 22 sectors. Among these sectors, chemical, textile, and nonferrous metal firms experienced notably steep increases compared to previous years.
- Chemical firms bonuses surged by about 21.28% to approximately 1,015,577 yen, reflecting strong sectoral performance.
- Textile firms bonuses rose by around 13.08% to approximately 904,222 yen.
- Nonferrous metal firms bonuses increased by about 12.64% to roughly 924,999 yen.
These increases in bonuses among key manufacturing sectors contrast with some declines in other sectors reported earlier in the year, but overall highlight the robust earnings and wage growth in manufacturing. The number of manufacturers that increased their summer bonuses in 2025 is 119.
The strong earnings, particularly among manufacturers, contributed to the increase in summer bonuses. Nominal wages increased 2.5% in June 2025 from the previous year, the fastest pace in four months, which supports the trend of higher bonuses and suggests ongoing upward pressure on compensation.
The survey results were released by Keidanren on Friday, showing a strong upward momentum being maintained in summer bonuses. Summer bonuses for major Japanese companies increased by 3.44% in 2025 compared to the previous year.
In summary, the record bonuses reflect a combination of sustained corporate profitability, wage hikes, and sector-specific strong performance in chemicals, textiles, and nonferrous metals, with manufacturing firms leading gains across the board in 2025 compared to prior years.
The strong performance in the chemical, textile, and nonferrous metal sectors led to significant increases in their respective summer bonuses, with chemical firms witnessing a surge of approximately 21.28% and an average bonus of 1,015,577 yen. The financial sector also benefited from this trend, as the rise in bonuses suggests robust earnings and wage growth, particularly among manufacturers.
The record-breaking photo opportunities for executives this year will likely stem from the impressive increases in summer bonuses, serving as a visible symbol of the economy's solid financial health, particularly in the manufacturing sector.
