Japan first implemented bonus pay during the post-World War II economic recovery in the late 1940s. This move was part of broader labor reforms aimed at improving employee compensation and productivity in a struggling economy.
Initially, the practice of distributing bonuses was adopted by companies as a way to motivate workers and enhance their loyalty amid challenging economic conditions. The introduction of bonus pay was intended to supplement regular wages, which were often insufficient due to inflation and economic instability at the time.
Over the years, bonus pay became institutionalized in Japan and evolved into a common practice among many companies, particularly in the form of summer and winter bonuses. These bonuses are now often calculated based on the company’s performance and employee contributions, reflecting the collective success of the organization.