Monthly
wage and bonus
The Monthly Labour Survey 2001 found the average
monthly wage (the industry total; companies
with 5 or more employees) in 2001 in Japan
to be 351,335 yen.
There
is a bonus system in Japan, in which bonuses
are paid 2 or 3 times a year.
Monthly
wage usually consists of a base salary plus
pay for overtime and supplemental benefit
payments to cover commuting, housing and family
costs, a management premium, and sales allowances.
Although
the supplemental benefits system remains strong,
an increasing number of companies are trying
to simplify the wage structure by eliminating
some benefits or abolishing the system altogether.
Though
not legally required, many companies pay bonuses
on a regular basis, usually in summer and
winter. In addition, some companies pay bonuses
at the end of the fiscal year based on the
company's or individual's fiscal year performance.
The bonus amounts vary depending on company
size. But in larger companies, the combined
summer and winter bonus can equal 4 to 5 times
the monthly wage. In recent years, some companies
have introduced a wage system that links bonuses
to overall corporate performance, in the hope
of reducing wage costs.
Another
aspect of the wage system that has come to
the fore recently is the introduction of a
salary scale linked to performance. With the
heightening of competition due to globalization
and the aging of Japanese society, companies
have become concerned about the burden imposed
by the high salaries paid to the growing ranks
of middle-aged and older employees. To create
a better balance between those employees'
salaries and their productivity, and to further
motivate workers, an increasing number of
companies, mainly large corporations, are
adopting a wage system based on annual performance
for managers.
Regulatory
standards
The following standards apply to wage payment
methods, payment amounts, and so on.
-
Five wage payment rule: cash, direct, lump-sum,
monthly, on a regular date
-
Wages must be equal to or above the minimum
wage (e.g. minimum wage for Tokyo metropolitan
city: 5,597 yen/day, 708 yen/hour as of
October 2001. ($1= about 120 yen)
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