The government has introduced a subsidy for workers who have reduced working hours to care for children in April 2025. The subsidy is provided to workers whose salaries have declined as a result of shortening working hours to care for children under age 2. This article looks into this subsidy.
[1] The subsidy is provided to insured workers who satisfy the two requirements below.
1. Workers who adopt reduced working hour system to care for children under 2
2. Workers who started reduced working hour system immediately after returning from childcare leave during which childcare leave subsidies were paid, or who have been insured for at least 12 months during the two-year period before starting working hour reduction.
The subsidy is applicable in the case a worker’s scheduled weekly work hours are reduced. Even if daily work hours have not been reduced, workers whose weekly work hours have been reduced meet the requirement 1.
The subsidy is given not only regular employees, but also workers who have become part-timers to care for children, thereby working less per week.
[2] Subsidy amount
As a basic rule, the amount of subsidy is equivalent to 10% of the wages paid during the period of reduced working hours (with an upper limit,) however, the amount will be adjusted to ensure the total monthly payment will not exceed the original wage. If a worker’s wage during the reduced working hour period exceeds 90% of the level at the start of the period, the subsidy rate will be lowered. For detailed subsidy rates, please refer to the table in the Labour Ministry’s website.
[3] Transitional measures
Even if workers have been working reduced hours to care for children under 2 since before April 1, 2025, they are deemed to have started the system as of April 1, 2025, in checking whether they meet the requirements or the base wage to determine the subsidy amount. The check will not go back to the point when they actually started reduced working hour schedule.
Normally, the subsidy application should be submitted every two months through a worker’s company, but the application may be submitted by a worker in person and every month. Companies should understand applicable employees and check the application procedure in advance.
[Reference]
The Ministry of Labour, “Overview of subsidies for childcare leave, etc.”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000135090_00001.html
