Japan Press Weekly

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2014 April 16 - 22 TOP3 [LABOR]

Non-regular workers lose 100 million yen in lifetime income

Non-regular workers earn over their lifetime 100 million yen less than regular workers do, Akahata estimated by using the wage survey data that the Labor Ministry released in February.

According to the Akahata estimate, workers in full-time employment can earn a total of 224.32 million yen during a 44-year work life (20-64 years of age). Meanwhile, if workers spend their life as a non-regular worker, their lifetime earnings over the same period will decrease by 103.28 million yen to 121.04 million yen.

The data indicates that the younger generation’s wage gap between regular and non-regular workers is narrower than that of other generations. Contingent workers aged between 20 and 24 years old take home 2,287,000 yen a year on average, 25.9% lower than 3,088,000 yen, the amount regular workers of the same age receive on average.

In Japan, regular workers’ pay rates climb in accordance with their age while non-regular workers’ wages remain at the same level regardless of age.

A comparison of the annual earnings of non-regular and regular workers aged between 50 and 54 shows a big difference. Last year, for example, while full-time workers earned 6,314,000 yen a year on average, non-regular workers received only 2,679,000 yen.

Under the Japanese pension system, the level of workers’ wages over the course of their career reflects the amount they receive in pension benefits. The income gap between regular and non-regular workers will widen even after their retirement.

The Abe government intends to relax regulations on the use of temporary workers, which will encourage corporations to replace full-time workers with non-regular workers.