Subsidies For Hiring Inexperienced and Others Challenged To Find Employment. December 2, 2022

On December 2, the Ministry of Health, Labour and Welfare (MHLW) announced the expansion of a specific job-seeker employment development subsidy (human resource Securing and development courses in growth fields) based on the second supplementary budget for FY2022. Hiring subsidies for inexperienced and employment-challenged people is a significant benefit for all employers.

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The source of the information in this article is the MHLW and other reporting organizations. Japanese company and staff registrations, and ongoing reporting procedures relating to all matters of employment law can be complex, even for Japanese companies, and must of course be handled in Japanese. As with all social welfare and labor law matters in Japan, please seek out professional Sharoushi (Certified Labour Law and Social Insurance Attorney) support to ensure you and your company remain in compliance.

 In Japanese, please see…

https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/kyufukin/tokutei_seichou_00008.html

The announcement states that:

If you hire inexperienced people who are difficult to find a job by introducing Hello Work, etc., we will develop human resources with a human resource development support subsidy, and if you increase your wages, we will provide you a subsidy that is more than other courses of the specific job seeker employment development subsidy.

Specifics on the Subsidies

Mothers of mother and child families, elderly people (under 60 to 65 years old), welfare recipients, etc.

  • Small and medium-sized enterprises: 900,000 yen (for short-term workers: 600,000 yen)
  • Large companies: 750,000 yen (for short-term workers: 450,000 yen)

Employment ice age generation unstable employer

  • Small and medium-sized enterprises: 900,000 yen
  • Large company: 750,000 yen

High-age people over 65 years old

  • Small and medium-sized enterprises: 1.05 million yen (for short-term workers: 750,000 yen)
  • Large companies: 900,000 yen (for short-term workers: 600,000 yen)

People with physical and intellectual disabilities, people with developmental disabilities, and patients with refractory diseases

  • Small and medium-sized enterprises: 1.8 million yen (for short-term workers: 1.2 million yen)
  • Large companies: 750,000 yen (for short-term workers: 450,000 yen)

Stricly disabled, disabled over 45 years old, mentally disabled

  • Small and medium-sized enterprises: 3.6 million yen (for short-term workers: 1.2 million yen)
  • Large companies: 1.5 million yen (for short-term workers: 450,000 yen)

Notes:

Subsidies are provided every six months from the date of recruitment as one term, and the above amount is divided into 2 to 6 terms.

Requirements for Target Workers

  • Workers subject to the normal course (Note 1) of the specific job seeker employment development subsidy
  • Those who hire as regular employment, indefinite employment, and fixed-term employment (automatic renewal (Note 2))
  • Those who get a job in an inexperienced job

(Note 1) It refers to the course for people with specific employment difficulties, the lifelong active course, the employment development course for victims, the employment development course for patients with developmental disabilities and intractable diseases, the employment ice age generation stable employment realization course, and the employment development course for welfare recipients.

(Note 2) It is eligible for subsidies in the case of “contracts that can be renewed as long as the target workers want”. However, those who are eligible for the “Lifetime Active Course” and the “Employment Development Course for the Victims” will be eligible for subsidies if they are certain to continue to employ for more than a year.

Provision requirements for training and wage increase

  • Start training using the prescribed human resource development support subsidy by the end of the final payment target period.
  • During the “Wage Increase Plan” plan (up to 3 years), the “wage paid every month (Note 3)” at the time of recruitment (if there is a trial period, it is raised by 5% or more.

(Note 3) Wages excluding annual bonuses, excess labor salaries (such as overtime allowances), and non-related wages (housing allowance, family allowance, commuting allowance, etc.).

Hiring subsidies for inexperienced and employment-challenged people is a significant benefit for all employers.