The employment insurance premium rate is renewed annually by considering the fiscal balance of the system. This article looks at the rate for fiscal 2026 and changes due to be implemented in October 2028.
[1] Premium rate for FY2026
The employment insurance premium rate is determined by considering the number of people receiving unemployment benefits and the situation of accumulated fund with the aim of stable fiscal management and easing of the burden of workers who are paying premiums. The list below shows premium rates for FY2026, which have been determined based on the estimation of fiscal management from this year onward.
Employment Insurance premium rates
|
Business category |
(1) Employees |
(2) Employers |
Total premium rate (1) + (2) |
|
General businesses |
5/1,000 |
8.5/1,000 |
13.5/1,000 |
|
Agriculture, fishery, forestry and sake brewing |
6/1,000 |
9.5/1,000 |
15.5/1,000 |
|
Construction |
6/1,000 |
10.5/1,000 |
16.5/1,000 |
[2] Expansion of applicable workers from October 2028
Currently, the Employment Insurance is applied to workers who satisfy the following conditions, with some exceptions, such as student workers.
- Employees whose scheduled working hours are at least 20 hours per week.
- Employees who are expected to be employed for 31 days or more.
These conditions will be changed from October 2028 as below in accordance with the law amendments in 2024.
- Employees whose scheduled working hours are at least 10 hours per week.
- Employees who are expected to be employed for 31 days or more. (unchanged)
With this change, most workers are expected to be covered by the employment insurance system.
[3] Administrative changes
When companies draw up the certificate of separation from service (rishokuhyo) for retired employees, months when “the number of days for which wages were paid is at least 11 days” or “the total working hours for which wages were paid are at least 80 hours” are counted as one month. From October 2028, the working days or hours will be changed to “at least 6 days” and “at least 40 hours,” respectively. The revision also includes other small changes of administrative procedures.
The Employment Insurance rate, which is reviewed annually, has been lowered for FY2026. Meanwhile, the Industrial Accident Insurance rate is reviewed once in 3 years. There is no change in the premium rate in fiscal 2026. Please be sure to apply the correct rates when renewing the fiscal year in the payroll calculation system.
*This information is based on laws and regulations as of the date of the original article.
