Japan to Require Companies to Disclose Ratio of Women in Management Positions
The Japanese Ministry of Health, Labour and Welfare plans to require all companies with 101 or more employees to disclose the ratio of women in management positions. This policy was proposed at a subcommittee meeting of the Labor Policy Council on November 26, 2023, and both labor and management representatives reached a broad agreement on the plan.
The ministry intends to submit a revision to the law on the promotion of women's advancement in the workplace at the 2025 regular Diet session. This law is set to expire in March 2026, and the ministry will also request a 10-year extension at the same session.
Experts have highlighted the low ratio of female managers in Japan compared to other countries. This disparity has contributed to the persistent wage gap between men and women in Japan.
Currently, listed companies are required to disclose the gender ratio of management in their annual securities reports. However, labor representatives on the subcommittee have called for the inclusion of unlisted companies in this disclosure requirement.
Employer representatives on the subcommittee expressed concerns that the policy would create additional paperwork for small and mid-sized companies. Nevertheless, both employer and labor representatives reached an agreement to extend the disclosure obligation to unlisted companies with 101 or more employees. This agreement was contingent on the ministry demonstrating the policy's benefits to management, such as addressing labor shortages.
The subcommittee also decided to expand the number of companies required to disclose wage disparities between male and female employees. This requirement will now apply to companies with 101 or more employees, instead of the previous threshold of 301 employees.