The speed of decline was the fastest since 2009, when the global financial crisis led to a drop of overtime wages by 13.5%.
Some 33.4% of non-regular workers received no compensation for forced leave, as compared to 14.8% for regular staff, a survey shows.
While the number of regular jobs increased 0.5% in 2020, that of non-regular jobs — including part-time roles — fell 3.9%.
The survey by business lobby Keidanren also found that the number of people commuting to work was reduced by 65%, or around 870,000.
Japan’s Business Federation says companies should have more financial leeway and pay hikes are unrealistic amid the economic uncertainty.
The government has been encouraging men to take paternity leave, but the practice is not common in Japan, which suffers from a declining birth rate.
The proportion of teleworkers fell to 22% in mid-January, from 31.5 % in May 2020, when the country was under its first state of emergency.
Member of the Japan House of Councillors Kuniko Inoguchi is backing a bill that would give workers a four-day work week.
The priority should be to protect jobs rather than a uniform pay hike, it said as it unveiled guidelines to the upcoming wage talks.
An OECD report has calculated that by 2050, Japan’s working-age population would have declined to 61.8%.
The amendment to the special measures law is set to be enacted by the Japanese government in early February.
Corporate workers can now search for jobs at schools in a new section of the education ministry’s website.
The government is requesting companies to cut the number of commuting workers by 70% with alternatives like teleworking.
Japan’s economy is expected to start recovering toward the end of 2021 as consumption gathers momentum and vaccinations become widespread.
The revised law would allow fathers to take a total of four weeks off, and give a shorter notice of their leave to their employers.
The review of the law would allow the government to handout subsidies to bars and restaurants that shorten operation hours.
The number of workers changing jobs has seen a 6.8% drop in the first nine months of this year compared to the same period last year.
Businesses that were more affected include service companies, which suffered a 13% drop in bonuses, the largest decline since 2009.
Japan International Cooperation Agency (JICA) has set up the Japan Platform for Migrant Workers towards Responsible and Inclusive Society (JP Mirai) to support foreign workers.
Japan’s cabinet has approved a third round of fiscal stimulus of about 73.6 trillion yen (US$706 billion) to deal with the economic impact from the pandemic.
However, Japan's job availability ratio improved, with 104 job openings for every 100 jobseekers as the economy begins a gradual recovery.
The Justice Ministry is relaxing work restrictions for foreigners, either as students or on other visa statuses, who are stuck in the country.
The subsidy scheme covers part of leave allowances firms pay to furloughed workers, subsidising up to ¥15,000 (US$144) per day.
A total of 5,634 applicants sat for the exams, competing for 157 positions.
The third supplementary budget is expected to be more than 20 trillion yen (US$192 billion), and include measures to help small businesses.
The domestic campaign was set up to help boost local businesses, providing local travellers with subsidies of up to 50% on entertainment-related deals.
The move by the Japanese government seeks to make the country more attractive for foreigners to work in by taking care of workers’ wellbeing.
While the economy continues to recover, bonuses for public servants is expected to be lowered for the first time in a decade.
More companies in Japan are giving their blessings or tacit approval for their staff to take on outside jobs in the midst of the gloomy economic landscape.
The move is a bid to raise employment numbers among foreign graduates in the country.