On April 1, Japan’s Ministry of Health, Labor and Welfare (MHLW) released materials on the 2023 Human Resources Development Support Grant. This followed the March 31 announcement on the Career Advancement Subsidy. New Japanese employment subsidies and grants are highly advantageous and support SME employers and businesses of any size.
1. 2023 Human Resources Development Support Grant
The Ministry reports that “In order to make it easier to use the human resource development support subsidy, we revised the system from April 1, 2023. From FY2023, “productivity requirements” will be abolished and “wage requirements” and “qualification allowance requirements” will be established.
Pamphlets and other support resources have been published in the 5th edition of the human resource development support course, education, and training leave grant course, investment promotion course for people, business development, and other support courses. Payment guidelines, application documents and application documents list checklist, a Q&A for business owners, etc. can also be found.
The “wage requirements” and “qualification allowance requirements” are summarized below, with details all available here and here.
If employers meet either “wage requirements” or “qualification allowance requirements”, they can receive an additional 15% of training expenses by applying separately.
Wage requirements
The wages (basic salary and various allowances) paid every month must be increased by 5% or more within 1 year from the day after the end of the training. In addition, if wages have increased by more than 5%, the wages of all target workers have increased by 5% or more by comparing the total wage for 3 months after the wage revision and the total wage for 3 months before the revision for each target worker.
Qualification allowance requirements
Regarding the payment of qualification allowance (an allowance paid regularly every month), after stipulating it in the employment rules, collective agreement or labor contract, etc., the allowance will actually be paid to all eligible workers within 1 year from the day after the end of training. Increase wages by more than 3%. In addition, if wages have increased by 3% or more due to the payment of qualification allowance, the wages of all target workers increased by 3% or more by comparing the total wage for 3 months after payment of qualification allowance and 3 months before payment of qualification allowance for each target worker.
Deadline for application for payment
For all eligible workers, separately apply for premium aid ingredients within 5 months from the day after the day after the wage or qualification allowance that meets the requirements is paid continuously for 3 months
2. 2023 Career Advancement Subsidy
Various materials have been published including Q&As on the most common issues. Details on employment-related subsidies, the payment guidelines, and the combined salary adjustment quick viewing tool are also published.
The key changes in 2023 career advancement grant are as follows.
Full-time employees
- From efforts after April 1, 2020 (ensures such as full-time employees, revision of regulations, extension of working hours, etc.) (Note 1), abolition of additional measures when meeting productivity requirements
- Integrate and expand the training subject to addition when making full-time employees by utilizing the training of career advancement subsidies and human resource development support subsidies
- Only for full-time employees of workers subject to specific training of human resource development support subsidies, the plan notification of human resource development support subsidies and career advancement plans are unified (Note 2)
- For those who have completed fixed-term practical training, the requirements have been changed because it is necessary to be subject to “employment rules, etc. of employment categories where the amount or calculation method of wages is different from regular workers”
(Note 1) If it exceeds 6 months from employment to the conversion date, it will be 6 months, and if it is less than 6 months, between the employment and the conversion date. It will be applied from the conversion after October 1, 2020.
(Note 2) When creating and submitting a “Training Implementation Plan Notification” for human resource development support subsidies on paper, it is considered as a “career advancement plan” in the career advancement subsidy (full-time employee course) by creating and submitting it (the training target is correct Only handled if you become an employee). In this case, it is necessary to write the additional items on the back of the “Training Implementation Plan Notification”.
Equalization wage regulations
- Abolish the additional measures if you meet the productivity requirements from the efforts after April 1, 2020 (Note 3)
- In terms of equalization, when there is a salary under the grade in the wage regulations of regular workers, etc., in principle, it is necessary that the hourly wage of regular workers and fixed-term workers are one-to-one, even if the salary is completely consistent. Even if you do not, if the salary of fixed-term employment workers is more than the salary of regular workers that is common, the payment requirements can be relaxed as follows so that it can be considered as common and applied.
(Note 3) With the abolition of productivity requirements, the subsidy amount is being reviewed.
Bonus and retirement plans
- From the efforts after April 1, 2020, the additional measures when meeting the productivity requirements will be abolished (Note 4)
(Note 4) Due to the abolition of productivity requirements, the subsidy amount is being reviewed.
Optional application expansion introduction treatment improvement course]
- For initiatives (social insurance enrollment) until the abolition of the system on September 30, 2020, the guidelines for career advancement subsidies to be applied as of the date of the initiative (R4. 4. 1 Based on the revised version), it is possible to apply for payment during the prescribed payment application period.
Part-time worker working hours extension
- Abolish additional measures if you meet the productivity requirements from the efforts after April 1, 2020 (Note 5)
(Note 5) Due to the abolition of productivity requirements, the subsidy amount is being reviewed.
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Related MHLW Resources, In Japanese.
Human resource development support subsidy
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/kyufukin/d01-1.html
Employment-related subsidies for business owners
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/kyufukin/index.html
Career advancement subsidy
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/part_haken/jigyounushi/career.html
Employment-related subsidies for business owners
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/kyufukin/index.html
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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 Labour Law and Social Insurance Attorney.)
New Japanese employment subsidies and grants are highly advantageous and support SME employers and businesses of any size.
