You are here: Home » International » News » Economy
Business Standard

Covid impact: Japan govt to cut employee bonuses for 1st time in decade

The Japanese government has decided to cut bonuses for its employees in fiscal 2020, the first time in 10 years, to narrow the gap with that of companies impacted by the Covid-19 pandemic

Topics
Coronavirus | Japan

IANS  |  Tokyo 

An employee working at a retail store in Japan. Photo: Reuters
An employee working at a retail store in Japan. Photo: Reuters

The Japanese government has decided to cut bonuses for its employees in fiscal 2020, the first time in 10 years, to narrow the gap with that of companies impacted by the Covid-19 pandemic.

The legislation to implement the decision will be submitted to the current extraordinary parliamentary session that runs until early December, reports Xinhua news agency.

The changes are in line with the National Personnel Authority's recommendation, as bonuses in the private sector were found to be lower than that of public servants amid the economic slowdown induced by the pandemic.

With the new legislation introduced on Friday, the annual summer and winter bonuses for national public servants for fiscal 2020 will be equivalent to the salary of 4.45 months, down 0.05-month worth of wages compared to last fiscal year.

The annual income, meanwhile, will stand at an average of 6.73 million yen, down 21,000 yen.

According to local media reports, since public servants are not permitted to go on strikes or carry out collective bargaining, the authority on their behalf annually proposes the appropriate salary levels to the Cabinet and parliament to make sure that the levels of their wages and bonuses are on par with employees in private sectors.

--IANS

ksk/

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, November 07 2020. 07:52 IST
RECOMMENDED FOR YOU
.