Bonuses at Japanese companies are expected to fall this summer by around 1% to 3% from a year earlier due to the novel coronavirus pandemic, a development that would add downward pressure on private spending, according to recent projections by six entities.
The decline in summer bonuses per employee, forecast by four think tanks and two security firms, follows a 2.6% fall in winter bonuses and a 0.5% increase in summer bonuses last year from year-earlier levels.
Daiwa Securities Group Inc. projected the largest fall of 3.9% in this year's summer bonuses, while Mizuho Research & Technologies Ltd. estimated the smallest decline of 1.3%.