Gender pay gap disclosure in Japan is now a requirement for employers with the government’s Act on Promotion of Women’s Participation and Advancement in the Workforce (“Act”), which took effect in 2022 but now requires the public reporting of gender wage gaps annually and within three months of the end of a company’s fiscal year. As most companies in Japan end their fiscal year in March, they have had until the end of June 2023 to disclose the gender gaps revealed in their 2022 wage data. (This was the first year when such annual public disclosure was required by the Act).
In 2022, the OECD ranked Japan as the 4th lowest out of 38 OECD countries, with a gender wage gap calculated at 22.1%. This gap can be attributed to the low rate of female managers in Japan (15%) and the high percentage (50%) of female employees who are either part-time or fixed-term employees
Companies are required to analyze the gender pay gap for their overall employee population as well as provide separate analyses for specific employee groups such as regular employees (those on full-time indefinite contracts) and irregular employees (part-time and fixed-term employees). Such figures would include base wages, bonuses, and allowances but can exclude severance pay and commuting allowances.
The gender pay gap data must be disclosed on the company’s own website or the government website, which promotes and advances women’s participation in the labor market. From the beginning of 2023, the gender pay gap data has also been required to be included in annual securities reports for listed companies.
This article about gender pay gap disclosure in Japan is provided by Cornes, Asinta’s benefits consulting Partner in the country. If you need support with your employee benefits in Japan, please contact Asinta, and we will put you in touch with the local experts at Cornes.