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

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

IANSUpdated: Saturday, November 07, 2020, 07:51 AM IST
article-image
Image for representation | AFP

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.

RECENT STORIES

US President Donald Trump & Vladimir Putin Hold Sixth Call To Discuss Middle East Tensions & Ukraine...

US President Donald Trump & Vladimir Putin Hold Sixth Call To Discuss Middle East Tensions & Ukraine...

Industrialist ML Mittal Recalls Modi’s Simplicity During 1998 US Visit (VIDEO)

Industrialist ML Mittal Recalls Modi’s Simplicity During 1998 US Visit (VIDEO)

'Had 30-45 Seconds To React': Pak PM Shehbaz Sharif's Advisor On India's BrahMos Attack On Nur Khan...

'Had 30-45 Seconds To React': Pak PM Shehbaz Sharif's Advisor On India's BrahMos Attack On Nur Khan...

'India Has Over 2,500 Political Parties': PM Modi's Speech Leaves Ghana MP's Stunned (VIDEO)

'India Has Over 2,500 Political Parties': PM Modi's Speech Leaves Ghana MP's Stunned (VIDEO)

France Bans Screens In Childcare Centers For Kids Under 3 To Safeguard Early Brain Development

France Bans Screens In Childcare Centers For Kids Under 3 To Safeguard Early Brain Development