Gender pay gap: Japan will make big companies disclose wage disparities

 Japan plans to require large companies to disclose wage gaps between men and women in a bid to overcome stubborn gender inequality in the workplace.

Companies will be required to disclose women's pay as a percentage of men's, on their website or elsewhere, breaking down the figures by permanent and non-permanent employees. Any legitimate reason for gender pay disparities will need to be provided.

The move was announced as part of Japan’s “new capitalism” action plan, pushed by Prime Minister Fumio Kishida, and aims to also tackle Japan's chronic labour shortage.

The new rules will apply to any public or private company that employs more than 300 employees. Nearly 18,000 businesses will be affected and could be ordered to disclose the information as early as this year, Nikkei Asia reported.

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The new measures add to a list of existing rules companies in Japan must abide by, such as publishing the percentage of female executives and the difference in average tenure between men and women.

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