April 22 Update. Bookmark this page for 2024 Labour & Social Welfare Updates

The frequency and volume of information updates published by the Japanese Ministry of Health, Labor and Welfare (MHLW) is substantial, and typically a burden on businesses to keep up to date. Stay on top of 2024 Employer – Worker labor laws and guidelines by bookmarking this page to see the updates, and then clicking through to the Verse articles and MHLW source materials for greater detail. Bookmark this page for 2024 Labour & Social Welfare Updates.

Notes about Verse and our Articles.

As Japanese Sharoushi (Certified Japanese Labor and Social Security Attorney), Verse Corporation endeavors to prioritize and accurately summarize recent government introductions and updates to labor law and Social Welfare Guidelines. However, we do not accept any responsibility for inaccuracies in our materials, nor for any consequences of readers relying on our materials.

*Verse Corporation publishes articles on timely issues in Japanese Social Welfare and Labour Law.Japanese payroll, source deductions, and all labor law work & pay rules regarding compensation, social insurance, absenteeism & sick leave, etc. require strict adherence. Labor/employment law can be complex, even for Japanese companies, and must be handled mostly in Japanese. As with all social welfare and labor law matters in Japan, please seek out professional Sharoushi (Certified Labor and Social Security Attorney.)*

The bulk of the Japanese Ministry of Health, Labor and Welfare (MHLW) announcements are in Japanese. There are some general materials on the English site, however it tends to
reflect only basic information. Please always seek out a local Japanese Sharoushi for an accurate interpretation of these complex rules and laws.

In our External Resources you will find links to a select number of trusted Japanese and global resources addressing Japanese labor law, workplace Employer responsibilities and trends, etc.

To Date. Since April 1, 2024 (Reiwa 6)

April 11, “Fix-rate tax reduction Q&A for income tax for 2020 6 years 2020 revised version” was published on the National Tax Agency’s fixed-rate tax reduction special site.

The special and limited-time (July-December 2024) fixed-rate-tax rate reduction, to relieve the burden of high inflation on Japanese citizens, is one of the most talked-about tax issues recently. All employers must be prepared to calculate and implement the reduced taxes per the guidelines.

The details and guidelines for calculations and payroll handling can be found here:

Fixed tax reduction for the sixth year of Reiwa, revised version for April 2020
Integrated measures for benefits and flat-rate tax reduction for the new economy

April 10, 2024. Revisions to the My Number Act, etc. to be enforced from May 27, 2024.

Employers, employees and persons ij general need to be aware of these revisions since, as we should all know by now, the My Number Card is rapidly becoming a central component of the management of all relevant persona data controlled by the government.

April 9. Revisions regarding “Handling of so-called telecommuting allowance in the calculation of extra wages” affect employees’ taxable income.

The MHLW states that “Any of the telecommuting allowance can be excluded from the calculation basics of extra wages as compensation for reasonable and objectively calculated actual expenses, etc. Given “the idea of actual expenses compensation” and “how to calculate actual expenses compensation”, if it is paid as compensation for the actual expenses necessary for business management, under Article 11 of the Labor Standards Act. It is said that it is not necessary to consider this as extra wages

For the details on the revisions, some of which impact those moving out of Japan, the required registration by various Professional, and more, please visit the following:

The Cabinet has decided on a Cabinet Order to determine the implementation date of the Amendment Act to the My Number Act, etc.
Liaison meeting of relevant ministries and agencies on the promotion of the spread and use of the Individual Number Card (6th)
A draft law to partially amend the law on the use of numbers to identify specific individuals in administrative procedures

April 3. Updated “Year-end Adjustment Calculation Sheet (for Reiwa 6)” and “Deduction Results Book” on the special site for fixed-rate tax reduction.

The source NTA material is found here.

With the revision of the tax system in 2024, a special deduction (flat-rate tax reduction) for income tax for 2020 will be implemented.

The “Year-end Adjustment Calculation Sheet (for 2020)” and “Deduction Results Book for Each Person” updated on the National Tax Agency’s fixed-rate tax reduction special site were published. This is a sheet that allows you to efficiently calculate the tax amount of the year-end adjustment of the salary earner (employee) by entering the total salary of the salary earner (employee) and the number of dependents to be deducted.

April 1. Updated Career Advancement, Employment Adjustment and other Subsidies – Verse Resources Article

Various materials related to the 2024/ Reiwa 6 subsidy and grant programs have been released by the Ministry of Health, Labor and Welfare. Updated Career Advancement Grants and Subsidies, etc., and more detailed versions are published.