A section, or ka, is the basic management unit in a Japanese company, typically a team of a few to a few dozen people inside a department. The kacho runs it day to day, allocates work, evaluates staff and drafts many of the ringi proposals that go up the line. Below the kacho there may be a deputy and one or more kakaricho. Above sits the bucho.
At traditional employers kacho is reached after long service. The labour ministry's 2025 Basic Survey on Wage Structure put the average kacho-level employee at 49.5 years old with 20.9 years at the company, on about 529,000 yen a month in scheduled pay. That is around 70% more than the average non-manager, before bonus.
Becoming kacho is often the point at which a company stops paying overtime, on the basis that the person is now an exempt manager. That treatment is common, but courts decide exemption on substance, not title.
What it means for a foreign employer
- It maps roughly to Manager or Senior Manager. A kacho at a large Japanese company may run a bigger team than a foreign subsidiary's Manager, so check the scope.
- Promotion to kacho can cut pay. Staff who lose overtime on promotion sometimes earn less. Look at total cash, not the title, when you compare offers.
- Exempt status needs substance. If your Japan "managers" have no real authority over staff, hours or budget, you may owe overtime.
- Kacho candidates are mid-career, not junior. Younger kacho exist at foreign and newer companies, but at traditional employers a kacho in their thirties is unusual.
Sources
- Ministry of Health, Labour and Welfare, Basic Survey on Wage Structure 2025, table on wages by position (employees on open-ended contracts).
- Labour Standards Act, Article 41.