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.
New MHLW Announcements To Date. Since April 1, 2024 (Reiwa 6)
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AUGUST 2024
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August 22, 2024
Updates to the Fixed Flat Rate Tax Deduction Q&A.
In an earlier article, Verse reported on the special 2024 Flat Rate Tax Deduction in Japan, to provide modest relief to all taxpayers from inflation and a difficult economic environment. It can be a confusing law to understand, and the NTA’s (National Tax Agency) Q&A is helpful.
- The special Flat Rate Tax Deduction Site is here. *English Materials Available
- On the site, you will find the key documents instructing employers on the special deductions: how to deal with the deduction in income tax withholding, along with how to inform employees. SOme of the key ones, in Japanese, are: The 2024 Flat Rate Tax Deduction Q&A; Handling of the Special 2024 Flat Rate Tax Deduction; and * English Instructions on the 2024 Flat Rate Tax Deduction.
Updated Reports for the Advancement of Women, and also for job-seeking Elderly & Disabled
The MHLW announced recently study updates regarding the laws on advancement of Women, and also for the support of the elderly and disabled seeking employment. These are separate announcements that employers can search on – however, we group them here as both are related to employment equity, an area of Japanese labor law growing in importance. Employers must remain aware as these updates inevitable make their way into law.
- Advancement of Women. The MHLW portal and associated reports are here.
- The report advocates for the extension of the Law on Women’s Advancement for another ten years. It addresses the issues of wage disparities, female Manager representation numbers, and harassment not only for large companies employing over 100 people, but also for smaller companies. Companies must also publish information on their related policies.
- Support and Subsidies for Elderly and Disabled Job-Seekers. The JEED (Job Seeker Support Organization) porta, PDFs and videos are here.
- These videos are in Japanese but most browsers will provide English subtitles. The PDFs are also in Japanese. Important information on applying for and accessing grants & subsidies are explained. Helpful ways of implementing such efforts in the workplace are also explained.
August 16, 2024
Self Diagnosis of Company Working Conditions: Portal and App. Updated.
The MHLW’s (Ministry of Health, Labor and Welfare) work style and rest improvement portal site was renewed. This is a useful tool for both employers and employees to assess their workplace and the work rules in place relating to working hours, overtime, rest, etc.
The Ministry outlines the main points impacting employers and employees and has updated both the portal providing information, and the self-diagnosis App itself.
The portal is here: MHLW Self Diagnosis Portal
Employer App. Employer Self-Diagnosis App is here.
Employee App. Employee Self-Diagnosis App is here
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JULY 2024
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July 23, 2024
Dramatically changing Japanese demographics and societal norms are driving big changes in Labor law for the elderly, women and technical interns. We outline some recent developments, in each area, that employers should be aware of.
1. The Elderly – Working until 70. Study Group Proposals Will Impact Labor law
The 7th study group for the formulation of the Outline of Measures for the Elderly Society states the goal to “develop an environment where you can play an active role throughout your life”. They also state that “In 2021, measures to ensure employment until the age of 70 were made mandatory, but only about 30% of the total companies are implementing it. The issue is to work on devising systems such as personnel and salary from a medium- to long-term perspective, including responding to employees and the younger generation who are approaching old age, and to improve the quality of employment so that they can make use of their experience and knowledge to play an active role even in old age.”
Goals Addressed in the Study Group, which will inevitably be considered and adopted by the MHLW include the following. All the details of the group’s findings are available here – in Japanese.
- Career advancement and expansion of responsibility in anticipation of old age
- Increase in the number of employees over the age of 65 and the status of corporate efforts
- Preserve an environment where you can continue to work according to your wishes
- Review of the pension system in response to the diversification of work styles
- Elimitation of nursing care turnover
2. The Promotion of Women in the Workforce. Study Group Proposals Will Impact Labor law
The 10th study group on the promotion of women’s success in the field of employment was held and concluded that the current Law on the Promotion of Women’s Participation and Advancement be extended for 10 years. The detailed submissions of the group to the MHLW are found here – in Japanese.
- Promotion of efforts in small and medium-sized enterprises
- Certification of Eruboshi* based on the Law on Promotion of Women’s Participation and Advancement. * Eruboshi is a system for certifying companies with excellent implementation of initiatives for the promotion of women’s activities
- Publication of information on women’s success
- Improvement of women’s health literacy
- Addressing Harassment: General, Customer, Sexual and Self Destructive
3. Technical Intern Training and Regulation Revisions.
Relevant for domestic and, increasingly for foreigners entering Japan, technical intern roles are on the rise and becoming more strictly overseen to ensure fairness and effectiveness.
A Recent Example: Late Night Hours
Regarding the technical intern training plan certified as including the late-night working hours (late-night work), when there is a change in working hours, the MHLW “Operation Guidelines Page 151 [When changing the working time includes the late-night time zone] Change certification is required. There are ongoing changes / additions to labor law relating to technical interns, and the details can be found here – in Japanese
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July 16, 2024
Year-End Adjustments and Documemts to Change in September 2024.
A legal requirement, and an important one to all companies and their employees are the year-end adjustments that must be done after every calendar year. These adjustments “adjust” employees’ final tax returns and amounts owing, once the year is complete and the employer reconciles the various taxes and insurances actually owing with those paid during the year based upon estimates.
There will likely be additional revisions before the end of the year, so be sure to check on the final documents before completing employee year-end adjustments. Here you will find links to each of the revised documents.
- Insurance premium deduction declaration for salary earners for 2020 (PDF/532KB)
- 2020 Basic Deduction Declaration for Salaried Income Earners and Spousal Deduction Declaration for Salaried Income Earners Declaration for Fixed Tax Reduction for Year-end Adjustment and Income Amount Adjustment Deduction Declaration (PDF/496KB)
- Declaration form for deduction for dependents (assetion) for salary earners for 2020 (PDF/573KB)
- 2020 year income withholding book for salary earners (PDF/1,419KB)
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July 12, 2024
Limited English Resources Available for “Foreign” Companies Operating in Japan
Regardless of your size or employee count, and whether you employ Japanese staff, expats or both, the rapid pace of change in Japanese employment law can be a challenge. Non-Japanese companies operating in Japan need local professional support to make life much simpler, stay above the employement law, and keep employees happy.
Domestic (Japanese) companies typically engage local Accountants and Sharoushi (explained above): Tax Experts and / or lawyers are also often put in place. Again, this is due to the unique employment and regulatory environment here. For non-Japanese companies, trying to deal with the requirements in Japanese is an even greater burden and a risk.
Here are some English Resources that can hep you get up speed and stay current. The caveat is that in Japan, unfortunately, you cannot fully rely on English resources – only the official original Japanese source materials can be legally relied upon. In our External Resources you will find greater detail on each of these sources.
MHLW. Japan Ministry of Health, Labor and Welfare
https://www.mhlw.go.jp/stf/english/index.html
MHLW YouTube Channel – All Japanese but might be helpful.
The Ministry of Health, Labour and Welfare is a cabinet level ministry of the Japanese government. It is commonly known as Kōrō-shō in Japan. The ministry provides services on health, labor and welfare.
Among others, the ministry contains the following sections:
- The Health Policy Bureau
- The Labour Standards Bureau (including the Industrial Safety and Health Department, Workers Compensation Department, and Workers’ Life Department)
- The Human Resources Development Bureau
- The Equal Employment, Children and Families Bureau
- The Health and Welfare Bureau for the Elderly
- The Pension Bureau
JILPT. Japan Institute for Labour Policy and Training
https://www.jil.go.jp/english/index.html
JILPT, or the Japan Institute for Labour Policy and Training, is a government-related organization. The objective of The Japan Institute for Labour Policy and Training is to contribute to the planning of labor policies and work toward their effective and efficient implementation, as well as to promote the livelihood of workers and develop the national economy by conducting comprehensive research projects on labor issues and policies, both domestically and internationally, and capitalize on the findings of such research by implementing training programs for administrative officials.
ILO. International Organization. Japan Membership
https://www.ilo.org/global/lang–en/index.htm
The only tripartite U.N. agency, since 1919 the ILO brings together governments, employers and workers of 187 member States , to set labour standards, develop policies and devise programmes promoting decent work for all women and men.
*Please note that this is not intended to be an exhaustive list. We do not guarantee the accuracy of the content of any of these sites. We do not assume any responsibility whatsoever for use of these resources.
July 1, 2024
Support subsidies for Dispatch Worker Employers. Details in Japanese are available here.
The Ministry of Health, Labor and Welfare started accepting applications for the support subsidy for securing human resources (special course for dispatch workers). The MHLW states that “The eligible employer profiles, grant amounts, and necessary documentation are all found here. If the dispatched employer develops or improves a new wage system according to the provisions of the labor-management agreement, such subsidies for dispatched employers promotes the stability of the employment and the treatment of the work.”
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JUNE 2024
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June 13, 2024
An update on labor law applicable to dispatch employees.
For details, and the numerous associated laws and directives, all in Japanese, please visit this link on the MHLW website
SUMMARY
On June 6, the MHLW (Ministry of Health, Labor and Welfare) released an update on the enforcement date of the new law on freelancers. Freelancers are a growing part of the “workplace” globally and in Japan. As a result, regulations applying to the companies engaging freelancers are growing and increasingly strictly enforced.
For companies that outsource business to freelancers working as individuals, it is mandatory to specify the terms and conditions of the transaction when outsourcing, within 60 days in principle from the date of receipt of benefits, and establish a system for harassment countermeasures. The Fair Trade Commission and the Small and Medium Enterprise Agency are mainly responsible for the provisions on the optimization of legal transactions, and the Ministry of Health, Labor and Welfare is mainly responsible for the implementation of the provisions on the maintenance of the working environment.
The update addresses the purpose of the law, the contents of the law, and the applications of the law.
In the “Contents of the Law”, the following 7 mandatory items will be required to be shown and met by the ordering company.
1 Clarification of the terms and conditions of the transaction in writing, etc.
2 Setting the remuneration payment due date and payment within the due date
3 Prohibited acts
4 Accurate display of recruitment information
5 Consideration for balancing childcare and nursing care and work
6 Establishment of a system related to harassment countermeasures
7 Prior notice and reason disclosure such as mid-career cancellation
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MAY 2024
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May 24, 2024
A notice on the revised Employment Insurance Act has been issued.
For details, please visit this link on the MHLW website
SUMMARY
The MHLW identifies the follow as key points:
- Review of benefit restrictions for those who leave their jobs for personal reasons
- Review of employment promotion allowance
- Increasing the benefit rate of education and training benefits, etc
- Expanding the scope of those covered by employment insurance
- Establishment of Education and Training Leave Benefit
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May 8
Revised ministerial ordinances and notices on measures by businesses to prevent disasters by individual businesses related to hazardous work have been issued.
For details please visit these links on the MHLW website.
Amendments to the Occupational Safety and Health Regulations
Enforcement of ministerial ordinances
The MHLW references the “Study Group Report on the state of safety and health measures for individual business owners” in October last year, regarding measures by businesses to prevent disasters such as individual businesses related to hazardous and harmful work. Amendments to those that deal with the dangers caused by the place where the work is carried out are included, and measures such as “knowing the protective equipment necessary for work” and “knowledge of the work method” are based on the disaster situation by individual businesses, etc. It is said that the ministerial ordinance will be revised after scrutinizing the necessity.
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May 1, 2024
Fixed tax reduction for Sole Proprietors and Salary Earners (related to scheduled tax payment and tax return) was announced on the national tax agency’s fixed-rate tax reduction special website.
A. For Sole Proprietors
For details, please visit the National tax Authority (NTA) website.
SUMMARY
This is a summary of the matters related to fixed tax reductions implemented for income tax for sole proprietors, etc. in 2020, as a Q&A related to planned tax payment and tax return.
The planned tax payment amount for sole proprietors, etc. is calculated based on the scheduled tax payment standard amount, and the planned tax payment standard amount for 2020 is calculated as there is no fixed tax reduction, so in principle, the declared tax payment amount for 2020 (income tax amount) and the same amount as the reconstruction special income tax amount). And if the scheduled tax payment standard amount is 150,000 yen or more, it will be subject to the scheduled tax payment, and the amount equivalent to the fixed tax reduction (30,000 yen) for the person will be deducted from the planned tax payment for 2020 notified after June 2020.
Spouses or dependents of the same life (both are limited to residents. For the amount equivalent to the fixed amount of tax reduction related to “same life spouse, etc.” below, you can apply for deduction by applying for the reduction of the planned tax payment amount, and even if you deduct it from the planned tax payment amount for the first period, you can not be deducted. The amount will be deducted from the planned tax payment for the second term.
B. For Salary Earners
For details please visit the NTA site here
SUMMARY
About the fixed tax reduction of income tax for 2024
- Those who can receive a fixed tax reduction
- Fixed amount of tax reduction
- Implementation method
- Explanation of information and terms related to income tax (see the link from the two-dimensional code)
- Individual residence? Information on tax (see the link from the two-dimensional code)
Information on benefits, etc. (refer to the link from the two-dimensional code)
Filing flow for fixed tax reduction of income tax for 2024
- STEP1 Confirmation of the target of fixed tax reduction and fixed tax reduction
- STEP2 Confirmation of necessary procedures
- How to write a declaration form for dependent deduction, etc. (see the link from the two-dimensional code)
- How to write a declaration form for fixed tax reduction related to withholding tax (see the link from the two-dimensional code)
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APRIL 2024
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April 27, 2024
The “Examination of the way of spouse allowance for companies” site has been updated.
SUMMARY
The key updated areas of the site include the following:
- Leaflet “Please consider the way of “spouse allowance” based on the actual situation of the company – to promote the success of women
- Practical materials edition “To consider the way of “spouse allowance” – Matters to be considered regarding the consideration of the status of spouse allowance
- Labor-management negotiations, etc.
For details, please visit the MHLW site
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/haigusha.html
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April 25, 2024
The Ministry of Health, Labor and Welfare renewed the social insurance coverage expansion site.
For details please see this link to the MHLW website
SUMMARY
The key updated areas of the site include the following:
- A guide for human resources and labor managers “At such a time of expanding social insurance coverage! What are you going to do?”
- Explanatory video of guidance for human resources and labor managers “In-house awareness guidance with the expansion of social insurance coverage
- Flyer for employees “Benefits of joining social insurance” (A4 size 2 pages)
- Flyer for employees “3 steps to think about social insurance enrollment
- Flyer for employees “QA collection on social insurance enrollment”
For details please see this link to the MHLW website
https://www.mhlw.go.jp/stf/tekiyoukakudai_00002.html
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April 19, 202
The MHLW announced that The technical intern training system operation guidelines have been revised. There are also revisions to the reference form “Employment Contract and Employment Conditions (Reference Form No. 1-14)” etc.
For details please visit this link
SUMMARY
The main areas of update include the following:
- Chapter 4, Section 2, 3 (2) Related to the standards of the work to be engaged – ie. Overwork
- Chapter 4, Section 2, 10 (2) Things related to securing accommodation facilities
- Chapter 4 Section 4 Change of Technical Intern Training Plan (Article 11 of the Technical Intern Training Law) Table Classification of Change Certification and Notification of Technical Intern Training Plan
- Employment contract and employment conditions (Reference Form No. 1-14) (related to Article 8, Item 13 of the Regulations)
- Instructions on remuneration, accommodation facilities, and collection costs for technical intern trainees (Reference Form No. 1-16)
For details please visit this link
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April 16, 2024
The Ministry of Health, Labor and Welfare (MHLW) published new materials for subsidies such as equivalence support in 2020.
For details, please visit this link
SUMARY
Materials include information on subsidies for compatibility support; Guide to applying for subsidies for compatibility support; Payment guidelines; Application form (paper and digital)
The changes from the 6th year of Reiwa are as follows:
- Birth compatibility support course (child-rearing dad support subsidy) [expanded]
- Expanded number of male childcare leave workers
- Increased rate of taking childcare leave for men,
- Support course for flexible work style selection system [newly established]
- Introduction of multiple flexible work style choice systems, etc.
- Based on the “Flexible Work Style Support Plan for Childcare”, we will disseminate the policy of supporting the smooth use of the system and career development after use.
- Conduct interviews with system users and record them in the “meeting sheet”
- Based on the results of the interview, we created a “flexible work style support plan related to childcare” for system users
- Use a system that enables flexible working styles in 6 months from the start to above the prescribed standards
- Flexible work style selection system, etc.
- Change of start and end time, etc. (flextime system staggered attendance system)
- Telework for childcare, etc.
- Short working hours system
- Childcare service arrangement and cost subsidy system
- Paid leave for child rearing (vacation system to facilitate child rearing, child nursing leave system that exceeds the law)
- Amount of subsidy
- Two flexible work style choice systems have been introduced, and the target workers will use the system: 200,000 yen
- Three or more flexible work style selection systems are introduced, and the target workers use the system: 250,000 yen
- Childcare leave and other support course (support after returning to work) [abolition]
- Nursing care turnover prevention support course (special case for responding to the new coronavirus infection), childcare leave, etc. support course (special case for responding to the new coronavirus infection) [End]
For details, please visit this link
https://www.mhlw.go.jp/stf/shingi2/nenkin_20240416.html
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.
- Information on career advancement grants (2024 version)
- Career advancement grant Q&A (2024 6th edition)
- Information on career advancement subsidies
There are various MHLW portal sites for employer and worker-related grants and subsidies for career advancement, employment-related – subsidies, etc.
These source sites may be helpful:
The source MHLW Career Advancement website is here
The source Employment Adjustment Subsidy website is here
The source for all Incentive and Subsidy Programs is here
Bookmark this page for 2024 Labour & Social Welfare Updates
