Gender Equality

Japan's Labor Ministry Proposes Disclosure of Women in Management Ratios

Main image to the post Japan's Labor Ministry Proposes Disclosure of Women in Management Ratios

A subcommittee of the Labor Policy Council convened at the labor ministry building in Tokyo on November 26 to discuss important policy changes. The Labor Ministry is planning to impose a requirement on all companies with a workforce of 101 or more to publicly share the ratios of women in leadership positions. This proposal was broadly agreed upon by representatives from both labor and management during the meeting.

The ministry anticipates putting forth a revision to the law aimed at facilitating women's advancement at a regular Diet session scheduled for 2025, as the current law is set to expire in March 2026. There will also be a request for a ten-year extension of this legislation during the session. Many experts have highlighted Japan's relatively low percentage of female managers compared to other nations, which has been a factor contributing to the persistent wage gap between male and female employees in the country.

Currently, listed companies are mandated to disclose the gender distribution in their management within annual securities reports. However, labor representatives from the subcommittee have advocated for the inclusion of unlisted companies in this requirement. During the meeting, employer representatives voiced concerns regarding the potential increase in administrative tasks for small and mid-sized businesses. Nevertheless, an agreement was reached to extend the disclosure requirements to unlisted businesses with at least 101 employees, contingent upon assurances from the ministry about the policy's positive impacts, particularly in addressing labor shortages.

Additionally, the subcommittee has decided to widen the scope of companies obligated to disclose wage disparities between male and female employees, lowering the threshold from those with 301 employees to those with 101 or more. This move is intended to promote greater transparency in pay equity across a larger segment of the labor force.

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May 21, 2023 | 05:09