Japan recommends larger companies for public servant pay benchmarks

An expert panel in Japan has suggested that the government should raise the pay of national public servants by comparing their salaries to those at larger companies. Currently, the government uses salary data from businesses with 50 or more employees. The panel is recommending a return to using companies with at least 100 employees for these comparisons. The proposal comes as the Japanese central government faces challenges in attracting job applicants and retaining young employees. Many positions remain unfilled, and many young workers are leaving their jobs. The report highlighted that better salary levels and working conditions are key to making government jobs more appealing. Furthermore, the panel suggests that salaries for workers in policymaking agencies should be compared with those at companies with at least 1,000 employees. To improve job transfer conditions, the report also recommended financial incentives for employees who accept relocations. Other suggestions include flexible work options and creating job categories that involve less frequent transfers. The National Personnel Authority will now consider specific steps to implement these recommendations starting in fiscal 2025.