The Labour Ministry provides various subsidies to companies that support employees to maintain a work-life balance. With the fiscal 2024 supplementary budget approved, the ministry has introduced two new courses to the subsidy program from December 2024. This article explains details.
[1] Support course relating to workers who just had a child
This course is applicable to small or midsized business owners who have taken measures to encourage male workers’ childcare leave.
The course has two categories. Companies may apply for the subsidy in the first category when a male employee took childcare leave, while the second category becomes available when male employees’ childcare leave usage rate has risen. In the past, only companies that had received subsidies in the first category before were eligible to apply for the second category, but since December 17, 2024, companies may apply for the second category without receiving a subsidy in the first category. Requirements have also been eased to allow firms where male employees’ childcare leave usage rate has increased by more than 30% compared with a year earlier to reach 50% to receive 600,000 yen. Following is an example.
The rate two years ago: 25% (One out of four applicable workers took childcare leave.)
The rate one year ago: 66% (Two out of three applicable workers took childcare leave.)
=> The rate has increased by more than 30% and exceeded 50%.
[2] Staff substitution support course
Staff substitution support course is aimed to improve working environment when a worker takes leave or reduces work hours to care for children. Small or midsized companies that have implemented measures to provide allowances for employees covering for colleagues taking childcare leave or using a shortened work hour system or have hired substitute workers (including dispatched workers) may apply for the subsidy. Among the three retirements below, the scope for the first and second was revised in December to cover companies with 300 or less employees in all industries.
1. Companies that pays allowances for covering for a worker who takes childcare leave
2. Companies that pays allowances for covering for a worker who reduces work hours
3. Companies that have hired substitute staff for a worker on childcare leave
Regarding 1, if a company employs a Public Consultant on Social and Labor Insurance to revise its Work Rules or other relevant rules, the subsidy will be increased from 50,000 yen to 200,000 yen per applicable worker up to a ceiling of 1.4 million yen. A company may receive up to 300,000 yen before an employee returns to work from childcare leave. The company can receive the remaining amount of up to 1.1 million yen when the employee’s childcare leave ends.
As for 2, if a company employes a Public Consultant on Social and Labor Insurance to revise its Work Rules or other relevant rules, the subsidy will be increased from 20,000 yen to 200,000 yen per applicable worker up to a ceiling of 1.28 million yen. A company may receive up to 230,000 yen once a worker starts shortened work hour period. The remaining amount of up to 1.05 million yen will be paid when the worker’s child reaches age 3.
Companies must satisfy other requirements to apply for the subsidy. Please check details before making an application.
[Reference]
The Labour Ministry, “Childcare leave subsidy for companies”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kodomo/shokuba_kosodate/ryouritsu01/index.html
*The information is based on laws and regulations as of the date of this article.
