Subsidy budgets are generally decided on a yearly basis. At the beginning of each fiscal year, subsidies are newly introduced or abolished. This article looks at subsidy packages relating to wage hikes, an area where the government has been increasing efforts, and the new subsidy course for supporting workers undergoing fertility treatment or facing women-specific health issues.
[1] Subsidy package for supporting wage hikes
This package is aimed for encouraging companies to increase wages. It includes subsidies for operation improvements, career development (“the wage rules revision course,”) promotion of work style reform, personnel development, securing of workforce (employment management, work environment improvements,) increase in the employment of specific job seekers (the course for securing and training of workers in growth fields,) early reemployment (hiring support course, mid-career recruitment increase course,) and stable industrial employment (the upskilling support course). Among these, this article features two subsidies on which the government puts particular emphasis.
(1) Subsidy for operation improvements
This subsidy is provided to partially cover the costs when companies raised the minimum wage in the workplace by at least 30 yen and also made capital investments to improve productivity. The minimum wage refers to the lowest hourly wage in the workplace.
Small- or medium-sized enterprises (SMEs) and small-scale firms are eligible for the subsidy. Companies with close relationships with large firms (“deemed large companies”) have been excluded from fiscal 2025. The subsidy will be provided if the difference between the workplace minimum wage and the region’s minimum wage is 50 yen or less.
Applicable investments are those that contribute to improving productivity as the examples below.
|
Expense category |
Examples of applicable expenses |
|
Introduction of equipment |
POS register system that reduces the time required for inventory management Specialized vehicles with a lift aimed for reducing transportation time |
|
Management consulting |
Review of operation flow by consultants with national qualification to improve customer turnover rates |
|
Others |
Systemization of customer management data |
[Subsidy amounts]
The amount of subsidy is the cost of investment made for productivity improvements multiplied by the subsidy rate. The rate is determined according to the workplace’s minimum wage before raised. If the minimum wage is under 1,000 yen, the rate is 80 percent. If it is 1,000 yen or over, the rate is 75 percent.
The subsidy’s upper limit is set based on the amount of increase in the workplace’s minimum wage and the number of applicable workers. The upper limits are also higher for companies with less than 30 workers than that of larger firms.
[Notes]
From FY2025, the ministry sets multiple periods for the application and wage raises. Companies that raise wages between May 1 and June 30, 2025, may apply for the subsidy during the first application period (from April 14 to June 13, 2025). A wage increase must be made after submitting the application. If a company raises its minimum wage in accordance with the regional minimum wage, pay raise should take place between the application date and the day before the regional minimum wage’s effective date.
(2) Career development subsidy (wage rules revision course)
This subsidy is provided to companies that have revised their wage rules and increased fixed-term employees’ base salaries by at least 3%. The following are workers’ requirements.
- A fixed-term employee hired by the company more than three months prior to the day before the wage rules’ revision and has been employed continuously for more than six months after the revision.
- An employee applicable to the revised wage rules based on the work rules or a labor contract whose base salary has been raised 3% or more.
- An employee whose base salary or fixed allowances have not been reduced without any rational reason from the period of three months preceding the day before the wage rules’ revision to the application date.
There are also company requirements to apply for the subsidy.
[Subsidy amounts]
The table below shows subsidy amounts per applicable worker.
|
Wage raise
Company size |
3% or more and less than 4% |
4% or more and less than 5% |
5% or more and less than 6% |
6% or more |
|
SMEs |
40,000 yen |
50,000 yen |
65,000 yen |
70,000 yen |
|
Large companies |
26,000 yen |
33,000 yen |
43,000 yen |
46,000 yen |
One company may apply for the subsidy for up to 100 employees in a year. If a company has newly established a wage increase system for fixed-term employees, an additional amount will be provided.
[Notes]
To receive the career development subsidy, companies must submit a “career development plan” by the day before introducing the career development course.
[2] Subsidy course for supporting workers undergoing fertility treatment or facing women-specific health issues
This subsidy has been newly established in FY2025 for SMEs that are making efforts to improve the working environment for employees undergoing fertility treatment or facing women-specific issues, such as those relating menstruation like PMS or menopause. Firms that have implemented measures to support employees having such problems may apply for the subsidy.
[Subsidy amounts]
Companies may apply for the subsidy only once and receive the amount shown below.
|
Requirements |
Amount |
|
A worker has used the measure for fertility treatment for five days (times). |
300,000 yen |
|
A worker has used the measure for menstruation-related problem for five days (times). |
300,000 yen |
|
A worker has used the measure for menopause-related problem for five days (times). |
300,000 yen |
[Notes]
The support measures must cover employees who are not enrolled in the employment insurance system. Since the subsidy is implemented with a limited budget, please make an application early if necessary. Please also check the latest information before applying.
[Reference]
The Ministry of Labour
“Wage increase support subsidy package”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/package_00007.html
“Subsidy for operation improvements”
“Career development subsidy”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/part_haken/jigyounushi/career.html
“Work-life support subsidy”
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 the original article.
