Japan's Labour Policy Council Tackles Equal Pay Five Years After Implementation

Key Highlights

• Labour Policy Council conducts a five-year review of "equal pay for equal work" reforms
• Focus on gender wage gaps and disparities between regular and non-regular employees
• Unions cite systemic causes such as job segregation, career tracking, and undervaluation of part-time work
• Business groups push wage increases but gaps persist, especially among SMEs
• Review may lead to legislative amendments or stricter enforcement standards

Analysis and Implications

This review signals Japan’s ongoing struggle with deeply embedded labor inequalities. Despite reforms initiated under the Work Style Reform strategy, wage disparities endure — especially affecting women and non-regular employees. For employers, the Labour Policy Council’s findings may bring heightened scrutiny and possibly tighter compliance mandates on wage transparency and job role parity.

Organizations employing a mix of contract and permanent staff should anticipate increased auditing of compensation structures. The push for broader application of the equal pay principle may also expand beyond gender to include part-time and dispatched worker classifications. Businesses operating across multiple tiers — from large corporations to SMEs — may face uneven regulatory pressures as the government explores differentiated policy applications.

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