An amendment bill of the Employment Insurance Act, submitted to the Diet in January, will require companies to make various changes in labor management.
[1] Extended scope of insured employees
Currently, employees whose scheduled weekly work hours are 20 hours or more and are expected to be employed continuously for at least 31 days are entitled to employment insurance. This scope will be expanded after October 1, 2028, covering employees whose scheduled weekly work hours are 10 hours or more.
[2] New childcare leave benefit
Under the current system, when insured workers who satisfy certain conditions take childcare leave, parental leave benefits or childcare leave benefits are provided. The amount is 67% of their daily wages at the time of starting leave, and 50% after 180 days. From April 2025, if employees and their spouses both take childcare leave for 14 days or longer, 13% of their daily wages at the time of starting leave will be given for up to 28 days.
[3] New benefit for shortened work hours
The Childcare and Caregiver Leave Act requires companies to shorten daily work hours of employees caring for children younger than three years of age to six hours, if requested. However, most companies do not pay for the reduced hours, based on the no-work, no-pay principle. From April 2025, the government provides benefits for workers whose incomes decline due to shortened work hours to care for children under two years of age. The benefit rate is up to 10% of their wages.
[4] Change in continuous employment benefits for elderly workers
The change in continuous employment benefits for elderly workers have already been approved and is not included in the latest amendment bill, but this article briefly touches on the issue. This benefit is provided when incomes of employees aged 60 or over have declined by a certain percent from the incomes at the time of age 60. The upper limit to the benefit rate is will be lowered to 10% of the monthly wage from current 15% in April 2025.
The amendment bill also includes matters concerning occupational training benefits or employment promotion allowances to support workers aiming to acquire new skills or receive education to improve their abilities. Employers should fully understand details of these changes and be prepared by the time the bill is enacted.
[Reference]
Labor Ministry, “Materials of the 202nd Labor Policy Council Employment Security Sectional Meeting”
