Women in Japan earn just 70% of what men earn

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Meanwhile, there is a lack of female representation in leadership positions with just 9.47% of managerial roles being taken up by women.

A significant gender pay gap persists among large companies in Japan compared to other OECD nations, according to a new study jointly conducted by WTW, Symphony Financial Partners and Xebral.

The study revealed that women employed in Japanese-listed corporations earn an average of 67.04% of as much as their male counterparts. The pay disparity is slightly wider for part-time employees, with women earning 69.65% of what men earn, compared to 71.64% among those employed in full-time positions.

These three industries see the widest disparity between men and women:

• air transportation (women earn 48.40% that of men),
• banking (51.92%), and
• fisheries, agriculture and forestry (56.81%)

These three industries see the narrowest disparity between men and women:

• information and communications (women earn 74.23% that of men);
• securities and commodities futures (73.90%), and
• iron and steel (72.16%)

The analysis also reveals a lack of female representation within leadership positions in Japan-listed companies. At present, women account for 13.11% of board member and officers’ roles, and just 9.47% of managerial roles on average.

The study indicated that larger companies by market capitalisation are more likely to appoint female board members and officers but lag smaller companies when it comes to appointing women in managerial roles.

The three industries with the highest proportion of women in managerial roles:

• air transportation (27.83%),
• services (20.97%) and
• insurance (18.06%)

The three industries with the lowest proportion of women in managerial roles:

• construction (2.52%),
• mining (3.50%), and
• transportation equipment (3.55%)

The three industries with the highest proportion of women at the board and officer level:

• oil and coal products (19.34%),
• insurance (17.49%), and
• pharmaceuticals (17.46%)

The three industries where women are least represented at the board and officer level are:

• warehousing and harbour transportation services (9.35%),
• iron and steel (9.73%), and
• construction (11.19%)

As the latest in a series of attempts to improve workplace gender diversity, Japan’s Ministry of Health, Labour and Welfare (MHLW) has revised the Act on Promotion of Women's Participation and Advancement in the Workplace (APWPAW), requiring large employers with 301 or more employees in the country to disclose the differences in pay between men and women annually.

While recognising the new adoption of human capital disclosures in Japan to help companies assess sustainable value creation and in turn, advance gender equality, Takaaki Kushige, Senior Director and Japan Practice Leader, Executive Compensation & Board Advisory, WTW, believes companies must go beyond mere numerical disclosures at the corporate level.

"They must also convey supplemental information about the current state of gender diversity and provide detailed actions that demonstrate commitment to improving their corporate culture," he added.

This study analysed close to 2,800 Japan-listed companies, of which 1,998 companies disclosed human capital data in their annual securities reports in June 2023.

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