The recent works on monetary policy have revealed the unconventional monetary policy (UMP), in fact, accelerates the inequality by the asset price mechanism, widening the wealth inequality; however, the UMP does have limited accounting in creating wage inequality as the overall real wage has been stagnant (Saiki et al., 2028; Israel et al., 2023). This contradicts the analysis of Japanese income inequality by Moriguchi and Saez back in 2006, which shows inequality in Japan is limited only to wage inequality: as the top 1% of income source is primarily wage income. However, after almost 20 years, new research results show rising inequality, especially between wage earners and rentiers. We revisit this issue using the heterodox approach to functional income distribution. Following the methodology of Kappas et al. (2023) with Pasinetti Index (PI), we investigate if there has been a rise in income distribution to rentiers (Seccareccia and Lavoie, 2016). Our empirical result with the VAR model would show 1) implementing the analysis of functional income distribution other than the analysis of personal income distribution with the Gini coefficient shows the rise of rentier income which affects macroeconomic growth negatively. 2) lower-income households hold fewer financial assets, will not see an impact on wages, and may even be negatively impacted by lower deposit interest rate earnings on saving accounts.