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Japan Ranks Lowest Among G7 for Gender Pay Gap

TOKYO - Some of Japan’s leading companies are stepping up efforts to tackle the gender pay gap, even as the country continues to rank the lowest among G7 nations on this issue. A new corporate ranking published by Nikkei Cross Woman highlights firms that are actively working to reduce disparities—not by listing companies with zero wage gaps, but by evaluating how seriously they are addressing the root causes and disclosing detailed strategies for change.

The ranking is based on an analysis of financial reports from approximately 1,600 companies. Topping the list is general trading house Sojitz, followed by Sumitomo Mitsui Trust Group and Mitsubishi UFJ Financial Group.

The top-ranked companies are notable not for eliminating the wage gap, but for how openly they explain the gap’s causes and outline concrete steps to narrow it. For example, Sumitomo Mitsui Trust and Mitsubishi UFJ pointed to outdated employment course systems that lead to differing career tracks for men and women. Both companies have started integrating these tracks.

Sojitz, ranked first, has accelerated overseas postings for younger employees. Recognizing that overseas assignments and experience in business subsidiaries are essential in trading company careers, Sojitz aims to provide such opportunities to employees—regardless of gender—before life events like marriage or childbirth may pose barriers. The company also promotes numerous programs supporting women in leadership, resulting in more female board members and executives.

Beyond initiatives, transparency in data disclosure also sets these companies apart. The reports clearly break down average annual wages by gender and job level, identifying precisely where disparities occur. Rather than obscuring the issue, these companies provide detailed analysis and policy responses.

Crucially, these initiatives are not treated as standalone HR policies but are framed as core elements of corporate strategy. Several firms have laid out clear targets: by the 2030s, they aim to have women comprise around 50% of both total employees and managerial positions. These are ambitious goals intended to build a truly inclusive workplace where everyone can thrive regardless of gender.

While such efforts signal positive momentum, Japan as a whole still lags behind. According to OECD data, the average wage index for women compared to men is 88 across member countries. Italy and France exceed 90. Japan, by contrast, remains below 80, the worst among G7 nations.

Experts warn that wide gender pay gaps correlate with lower labor productivity. In turn, reduced productivity may contribute to Japan’s declining birthrate—underscoring the gender wage gap not just as a social issue, but as an economic risk that could threaten future growth.

Asked why the rankings were created, Nikkei editor Maiko Oda said the goal was to recognize companies confronting the issue head-on, rather than those simply avoiding it.

Source: テレ東BIZ

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