Background
Japan's gender pay gap remains one of the widest among major developed nations, exceeding the OECD average. The government has been progressively strengthening legal frameworks to address this disparity. In 2022, companies with 301+ employees were required to disclose their gender pay gap.
However, mid-sized companies with 101-300 employees were exempt, limiting overall progress. The revised Women's Empowerment Act, promulgated in June 2025, addresses this gap and took effect on April 1, 2026.
Key Changes
1. Expanded Disclosure Obligations
The most significant change is the expansion of mandatory disclosure for gender pay gap and female management ratio.
| Company Size | Before Reform | After Reform |
|---|---|---|
| 301+ employees | Gender pay gap disclosure required | Gender pay gap + female management ratio |
| 101-300 employees | No obligation | Gender pay gap + female management ratio (new) |
| 100 or fewer | Best-effort obligation | Best-effort obligation (unchanged) |
2. Law Extended by 10 Years
The Women's Empowerment Act was originally a sunset law expiring in March 2026. The amendment extends it to March 2036 — a 10-year extension. While progress has been made in areas like continued employment during child-rearing, persistent gaps in female management representation and pay justify the extension.
3. Women's Health Considerations
Menstruation, menopause, and fertility treatment have been added as health considerations in the law's fundamental principles. New certification categories — "Eruboshi Plus" and "Platinum Eruboshi Plus" — will recognize companies excelling in these areas.
Calculating the Gender Pay Gap
Formula
Gender Pay Gap (%) = Female Average Annual Salary / Male Average Annual Salary x 100
Required Categories
| Category | Scope |
|---|---|
| All workers | All employees including regular and non-regular |
| Regular employees | Full-time, permanent staff |
| Non-regular employees | Part-time, fixed-term, dispatched workers |
Required Annotations
- Reporting period (fiscal year)
- Scope of compensation (base salary, bonuses, allowances)
- Scope of workers included
- Supplementary notes (e.g., conversion method for part-time workers)
Disclosure Timeline
Companies must publish data for the first fiscal year ending after the law takes effect, within approximately 3 months of the following fiscal year's start. For most companies (March fiscal year-end), the first disclosure deadline is expected around June 2027.
Action Plans
Companies with 101+ employees must also prepare and submit a General Employer Action Plan that includes:
- Plan period: 2-5 years
- Numerical targets: Female hiring ratio, management ratio, pay gap reduction goals
- Specific measures: Concrete initiatives to achieve targets
- Publication: Via company website and the Ministry of Health, Labour and Welfare's database
Job-Hunting Harassment Prevention
As part of this reform package, prevention of sexual harassment against job seekers becomes a mandatory employer obligation (amendments to the Labor Policy Promotion Act and Equal Employment Opportunity Act, effective around October 2026).
Required Employer Measures
| Measure | Details |
|---|---|
| Clear policy | Establish and communicate policy prohibiting harassment of job seekers |
| Consultation channel | Set up systems to handle complaints from job seekers and interns |
| Post-incident response | Prompt fact-finding and disciplinary action against perpetrators |
| Privacy protection | Proper management of complainants' personal information |
Risks of Non-Compliance
Administrative Actions
Companies that fail to comply with disclosure obligations face requests for reports, guidance, recommendations, and orders from the Minister of Health, Labour and Welfare. Failure to follow recommendations may result in public naming of the company, potentially damaging recruitment and brand reputation.
Penalties for False Reporting
Filing false reports in response to official inquiries carries a fine of up to ¥200,000.
What Companies Should Do Now
| Priority | Action | Target Date |
|---|---|---|
| High | Build systems for calculating gender pay gap data | FY2026 |
| High | Prepare female management ratio data | FY2026 |
| High | Draft and submit General Employer Action Plan | By effective date |
| Medium | Determine disclosure format and channels | FY2026 |
| Medium | Establish consultation channels for job-seeker harassment | By October 2026 |
| Low | Consider applying for Eruboshi certification | Ongoing |
Employee-Facing Actions
- Review compensation systems for unjustified gender disparities
- Enhance career development programs for women
- Establish fair evaluation criteria for management promotions
- Communicate work-life balance support systems (childcare, eldercare)
If you need assistance navigating these legal changes, consult a social insurance labor consultant or employment law attorney. Companies with 101-300 employees that are newly subject to disclosure obligations should begin preparations as early as possible.
