Bonuses for gov't employees to be cut for 1st time in 10 years

Thanks JP Govt.

It's must be done earlier.

Where lot's of people unemployed, salary/bonus cut then you should not take bonus from there taxes.

Cutting bonuses and thus income for everyone - across the board, regardless of their contribution - is mostly what gave Japan its "deflationary mindset" today, which the government and the BOJ have been trying to fight.

Indeed, low stagnating wages was long ago identified as the highest hurdle to sustained growth. And now the govt is deliberately creating the same problem all over again. Absolute madness.

Bonus would imply having done a good job, in Japan it Implys having a good job, regardless of results/ performance. In the last 10 years Saleries have dropped, a large % of workers on short term contracts, surviving hand to mouth, hoping to have enough for food and taxes. It's only fair the reciprients of taxes lose too. They should and the government lift their game and earn their bonuses.

Bonuses for gov't employees to be cut for 1st time in 10 years

As they should be.

They should and the government lift their game and earn their bonuses.

Don't know about the central government, but when I go to the ward office for tax records, residency forms, etc., it takes a few minutes of waiting in a comfy chair.

When I have gone to phone carrier offices, or private-sector banks for investment accounts, new accounts, etc. it takes hours. Those govt workers ARE earning their bonuses, from my extensive experience. The private sector is the one that needs to "lift its game."

@cricky

good point - Employees should receive bonuses for doing a good job, not having a good job

Many posters don’t understand the importance of the bonus system. The vast majority of Japanese household cannot survive without this.

Parents cant afford kids education, household maintain education, looking after elderly relatives etc.

for already struggling businesses, consumers will not have money to buy their products so many will either downsize or go bankrupt.

if anything, bonus should be increased. Otherwise normal Japanese will have to borrow money from dodgy loan sharks.

fwiw, 70% won't make 6.7 million, with the average being dragged up to there by high earners. The other obvious point is that this is for people employed on "seiki" regular lifetime contracts. There are also increasing numbers of government employers on "hiseiki" non-regular terms on lower wages and probably no bonus. Sometimes they will be doing exactly the same tasks as seiki government workers.

Anyway, this cut is small and is only for PR. Just some background, but earlier in the year, there were calls for public employees to be excluded from the 100,000 yen for everyone because it was reasoned that such people would be 100% unaffected by coronavirus.

Once again meaningless populism and a frankly, shortsighted and Counterproductive decision. Everyone, public or private sector receiving less bonuses will spent less in the retail, restaurant and tourism sectors, that affects those businesses already hard hit, negatively again.

Bonuses should be kept at the same level by government, adjusted up or down by private companies depending on current and anticipated company performance.

Better still, salaries should be raised and a merit bonus system should replace this across the line system.

Also with the economy a little Better now is the time for a 2nd resident financial support package as with a bit more optimism currently people would spent it more freely.

How stupid, that will additionally to the virus pandemic restrictions strangle the economy to an even faster death. But you can then proudly state out of the coffin to have saved some tax payer’s money. lol

Under the legislation, the annual summer and winter bonuses for national public servants for fiscal 2020 would be worth 4.45 months of salary, down 0.05-month worth of wages from last fiscal year

A single day's reduction from four-and-a-half month's worth of bonus?

Extracting the urine. Bigly.

So, they are cutting bonuses because of the pandemic. Does this mean the bonuses will return to the full amount after the pandemic has finished? Of course not! The pandemic is the ultimate in convenient scapegoats for the J-Gov.

In many cases, these bonuses are from a yearly salary divided into 18 installments, with 12 installments paid on a monthly basis, and 3 installments paid in June and December as 'bonuses'. Part of the two bonus installments, maybe one installment's worth, are subject to a performance weighting, so some get a little more, some get a little less. Not huge amounts.

@Dave........best comment on here today.You made me laugh.

Yeah..."bonus" here in Japan is NOT what bonus means in English as likely most everyone posting here knows.

I have always said that the J-bonus DOES allow companies to drop people salaries WITHOUT having to consult employee's. Back in the 90s my colleagues told me I was wrong on this, but then before the 90s ended the economy took a pretty good hit & a LOT of companies DID CUT bonuses, was are real bruhahaha at the time.

With Corona we are back in a bad situation, I know many whose companies have cut the FULL bonus for 2020 & likely that will happen again in June 2021 baring a roaring turn around

About time, a lot of us in private industry arent getting any bonuses this year, yet we are still paying the same high taxes. Would like to see a much larger permanent cut to bring it in line with the private sector

How come government employees get a bonus of any kind anyway?

Profit sharing?

Doesn't make sense!

Ten years of Abenomics are certainly paying off now.

Average salary of 6.7 million for govt employees. wow thats some good coin! I wish people could walk into any city hall outside of the major cities and see how many people are just sitting idle pretending to be doing work. I shouldn't complain though, Im doing exactly that, but where I work, I don't have to show up until an hour before class starts and leave once Im done all classes. I am working for a Japanese owned and operated company as a "full time" employee. I still feel like it's a dream and sometimes fear waking up from it. I wonder if that is how these govt employees feel...