The Abe administration has put the "equal work, equal pay" rule on its policy agenda, but it remains unclear how far the administration will go to pursue this goal. Few people would object to the idea that workers should be paid the same if they're doing exactly the same job irrespective of whether they are regular full-time employees or on irregular job contracts. There is a view that the seniority-based pay system prevalent among Japanese firms in itself is inconsistent with this principle. But the administration's efforts should focus on improving the conditions of the growing ranks of irregular workers, who are reportedly paid an average of roughly 60 percent of what regular employees make.
Prime Minister Shinzo Abe's newfound enthusiasm on the rule may come as a surprise given his administration's record of business-friendly policies. Since the 1990s, Japanese companies have increasingly relied on an irregular workforce, such as part-timers, those on term contracts and temporary dispatch workers, as they sought to save manpower expenses. These workers today account for about 40 percent of the nation's total workforce. Even as job data improves to the best in nearly a quarter century, demand for new employees remains stronger for irregular positions than for regular workers.
According to a 2015 survey by the Health, Labor and Welfare Ministry, the average monthly salary of people on irregular contracts who work full time was 63.9 percent that of regular full-time company employees. This disparity is in fact the narrowest since relevant statistics became available in 2005, as the growing manpower shortage pushed up wages for irregular workers faster than those for regular full-time employees. Still, the gap would be wider if bonus payments are included. The disparity remains much wider than in advanced European economies, where hourly wages of part-time workers are around 80 percent those of full-time employees.