World Japan to make big companies disclose gender wage disparity

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The government will soon require large companies to disclose systemic gender wage disparities that have given Japan the worst record among Group of Seven nations.

Prime Minister Fumio Kishida announced the policy decision to further the role of women in the workplace at a May 20 meeting of a council working to turn his pet project of new capitalism into reality.

Kishida indicated that work would proceed so the new system is in place this summer.

It would cover around 18,000 companies with more than 300 employees. In addition to disclosing the difference on remuneration between female and male workers, firms will be obligated to disclose the wage disparity between their regular and irregular employees.

The information will be made available through the websites of each company or through a special database set up by the labor ministry. The intent is to allow job seekers to confirm wage disparity levels at companies in which they are interested.

Companies that disregard this obligation or egregiously fail to heed directives issued by regional labor bureaus will be shamed by having their names publicly disclosed.

Under the current system to promote female participation in the workplace, companies are obligated to choose at least two items from a wide-ranging list, such as their ratio of female employees, and disclose that data.

The wage disparity item will be included in the list but made mandatory for companies with more than 300 employees.

 
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