Major Changes to Japanese Labor Relations, Insurance and Pension Systems Announced. October 2024

There are ongoing changes at the Japanese Ministry of Health, Labor and Welfare (MHLW), to keep up with the rapid pace of change in the workforce environment. Major Changes to Japanese Labor Relations, Insurance, and Pension Systems will go into effect in October 2024. Companies with over 50 employees in particular should recognize the mandatory application of employee insurance for part-time workers. Increased minimum wage and training subsidies were also announced.

The MHLW states that “Among the major institutional changes related to the Ministry of Health, Labor and Welfare to be implemented in October 2020, we would like to inform you of matters that will especially affect people’s lives”

Some key changes announced are as follows at this MHLW page (Japanese):

Insurance. Expansion of employee insurance coverage from Over 100 to Over 50 employees

Note: Changes apply to both welfare pension insurance and health insurance. Regarding the application of employee insurance for short-time workers, the company size requirement, which currently has more than 100 employees, will be lowered to more than 50.

Details of the changes to the Pension System Amendment Act 2024

Details of the changes to the General Employment Insurance Act 2024

Employment and labor relations: Expansion of education and training benefits

Regarding the professional practice education and training benefits, if the wage increases after taking the education and training, an additional 10% (80% in total) of the course fee will be paid in addition to the current additional benefits. For specific general education and training benefits, if you obtain a qualification and get a job, etc., an additional 10% (50% in total) of the course fee will be paid.

Details of the Education and Training Benefit System

Revision of the minimum wage

Contents: The minimum wage by region determined by prefecture has been revised. In all prefectures, an hourly increase of 50 yen to 84 yen (nationwide weighted average 1,055 yen)

Details of the Revised Minimum Wage by Region

NOTE. As a 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.

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