Japan Year-End Bonuses Fall; First Drop in 6 Years, Nikkei Says

By Masaki Kondo

Nov. 16 (Bloomberg) -- Average year-end bonuses at 155 of Japan's largest companies will fall for the first time in six years as rising fuel bills prompt steelmakers and power suppliers to slash payouts, the Nikkei newspaper reported today.

Payouts averaged 0.6 percent less than a year earlier at 844,119 yen ($8,699), the first drop since 2002, Nikkei said, citing its own survey. Declines may be sharper at companies not among the 138 that set bonus levels early in the year, before the impact of the global financial crisis was felt, the Nikkei said.

Bonuses fell 5.4 percent at steelmakers and 3.8 percent at power generators, according to the report.

To contact the reporters on this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net