The Ministry of Health, Labour and Welfare (MHLW) has revised the Act on Promotion of Women's Participation and Advancement in the Workplace (APWPAW), most notably introducing an annual gender pay gap disclosure requirement for large employers (as defined by the act). The change is the latest in a series of attempts by the government to encourage women to enter and remain in the workplace. Among OECD economies, Japan has one of the largest pay gaps between men and women at 22% (OECD data). The amendments came into force with their publication on July 8, 2022.
It is worth noting that the changes to the APWPAW occurred in tandem with changes to the Child and Family Care Leave Law (CFCLL) approved earlier this year as part of a series of measures intended to encourage new mothers to remain in the workforce. According to the government’s Gender Equality Bureau, the percentage of female employees who leave the workforce after giving birth is declining, but still around half of all female employees quit working after giving birth, giving Japan one of the lowest maternal employment rates among OECD member states. Foreign multinationals are often perceived as providing female employees with better opportunities for advancement and better work/life balance, a perception they often use to attract staff. Publication of action plans and gender pay gap analysis results will test that proposition but also provide opportunities for all companies to demonstrate how they compare with their peers on pay and support for female employees.