Takahiko and Kaori Wada

TOKYO (Reuters – Japan’s annual reports should include information about average wages and ratios of male managers. The move is part of Japan’s efforts to narrow the gender pay gap.

People said that the mandatory rule could be applied as early as the April 2023 fiscal year.

This move is part of Fumio Kishhida, Prime Minister of Japan’s efforts to reduce income inequalities and ensure a more equitable distribution of wealth that will lead to a sustained economic recovery.

Sources say that the government might also require firms to reveal the number of men working on childcare leave. They declined to identify themselves as they weren’t authorized to discuss the matter with the media.

According to a third official, the wage gap between women and men is an economic and financial problem. The premier feels a crisis.

“Other nations are moving at an incredible speed. The official stated that Japan needs to catch up at three times the speed of its predecessors.

The Financial Services Agency oversees a panel that will prepare a report this spring.

An official from the agency stated that they are still discussing issues but had not reached a decision.

Japan trails major peer countries in respect of gender equality. According to an Organisation for Economic Co-operation and Development survey, Japan’s gender gap in pay equality was the highest among the Group of Seven (G7) countries.

The World Economic Forum’s 2021 Global Gender Gap Index ranked it 120th out of 156 nations. This is a poor score on both women’s political empowerment and economic participation.

According to data from the health ministry, women working full-time earned 251,800yen ($2,083) per month in 2020. This is not nearly 75% of men’s 338,800yen.

Japan requires listed firms to report securities within 3 months of their financial year’s end. Most of them settle their accounts in March. ($1=120.90 yen)