Private researchers expect Japanese companies will pay higher seasonal bonuses for the third year in a row due to their strong earnings.
Projections by four think tanks show that companies with at least five employees will increase their summer payouts by between 2.9 and 3.5 percent.
This would mark the third consecutive annual increase, and a bigger jump than last year. Labor ministry data showed growth of 2 percent in 2023 from the previous year.
Mizuho Research & Technologies said in its projection that manufacturers have been boosting profitability due in part to a solid US economy and a recovering semiconductor market.
The think tank says the non-manufacturing sector that includes service operators is also seeing higher earnings due to inbound tourists. A shortage of workers is seen as another motivation for more generous bonuses.
Mizuho points out that pay increases agreed in the annual spring wage negotiations are a big factor. That's because seasonal payouts are typically determined by base pay.