Japan–Western Cultural Differences Ver13 “Western Bonus vs Japanese Bonus – part2” In the previous article (Ver12), I explained the structural differences between Western-style bonuses and Japanese bonuses. Here are several additional points summarized in a simple Q&A format.

European headquarters often set Japan’s salary‑increase rate based solely on inflation, but this approach ignores Japan’s unique labor‑market reality. Japan’s salary‑increase budget frequently exceeds inflation, and inflation‑based raises lead to real wage declines, lower motivation, and reduced competitiveness. True global management requires a Think Global, Act Local approach grounded in Japan‑specific data.