Shokumukyu 職務給

Job-based pay, set by the content and size of the role. Also written shokumukyū, job-based pay, job grade pay, yakuwarikyu.

Shokumukyu pays for the job rather than the person. The employer writes a description for each role, evaluates its size, places it in a grade, and attaches a pay range to each grade, usually benchmarked against the market. Someone who moves to a bigger job is paid more; someone who moves to a smaller one can be paid less. A softer variant, role-based pay (yakuwarikyu), grades broader roles rather than individual jobs and is common for managers.

Japan tried job-based pay before, in the 1950s and 1960s, and again with the "performance-based" reforms of the 1990s, with limited lasting take-up. The current shift may prove more durable because the pressure is different: competition for digital and specialist talent, global integration of HR systems, and the government's labour market reform agenda. The Cabinet Secretariat's August 2024 guidelines describe how 20 companies introduced job-based systems. Equal pay rules also push in the same direction, because a pay gap is easier to justify when it rests on documented differences in the job.

Adoption is uneven. Many companies have introduced job-based pay for managers only, or run it alongside the old ability grades. Japanese law makes it hard to cut pay or to move people out of roles, so a job-based system in Japan still sits inside strong employment protection.

What it means for a foreign employer

Sources

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General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.