All about Japan : Winter bonus

In Japan there is a bonus system on the salary, 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.

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 general, the combined summer and winter bonus can equal 5 to 6 times the monthly wage.

This Bonus system is very important in Japan because majority of people have to pay off their bank loan for the house they built, or appartment they bought! ( for exemple, you have to pay back ¥100,000/month for your bank loan, but in the contract you can choose to give back ¥400,000 or more when you get your winter and summer bonus.. that’s how bank loan system works)

Otherwise, some company decided to not give annual bonus by increasing the monthly wages of their employees..