Employee Benefits Update for Japan Q1 2025

Employee Benefits Update for Japan Q1 2025Cornes, Asinta’s Partner in Japan, provided this employee benefits update for Japan Q1 2025. The article covers updated government measures primarily aimed at providing flexibility and additional benefits to support employees caring for children and providing nursing care for family members. Also, disability employment exclusion rates for specific industries were lowered.*

Introduction of telework (best-effort obligation)

From April 1, 2025, telework has now been added in addition to the work style options previously outlined for workers raising children or providing nursing care. The revised list of measures for both nursing and childcare includes the following:

Childcare

  1. Measures conforming to the childcare leave system
  2. Flextime system
  3. Advancement / Deferral of start / End times
  4. Establishment and operation of childcare facilities, and other provision of equivalent benefits
  5. Telework

Nursing Care

  1. Short-time work (fewer hours per day)
  2. Flextime system
  3. Staggered work hours
  4. Assistance with nursing care expenses
  5. Telework

Note: For childcare, employers must select and implement two or more measures, from which employees can choose one. For nursing care, employers are obligated to implement one or more measures.

Measures to retain care workers

To combat labor losses due to many workers needing to provide long-term care, after April 1, 2025, in the fiscal year in which an employee reaches the age of 40, companies must provide employees with information regarding caregiving leave systems (including caregiving leave, work-life balance support systems, the application process for caregiving leave, and caregiving leave benefits). This information must also be shared when there is a report that they are facing a need to provide nursing care.

Workers eligible for exclusion from nursing care leave by labor-management agreement have also been reduced to only those with “2 or fewer prescribed working days per week.” If “less than 6 months of continuous employment” is stated as a worker that can be excluded, it must be deleted.

Revision of benefits for the continuing employment of elderly people

After April 1, 2025, the maximum benefit rate for continuing employment of elderly people will be reduced from 15% to 10%. As a result, the percentages used to calculate the benefit rate will also change.

Note: The benefit rate percentage is set so that the sum of the wages and benefits does not exceed 75% of the wages paid at 59 years of age.

Revision of benefit restrictions for those who leave their jobs for personal reasons

When a worker retires for personal reasons, a two-month limitation has been required after the expiration of the waiting period (7 days) before receiving the basic allowance (unemployment allowance). However, after April 1, 2025, the benefit restriction period will be one month.

This is part of the government’s policy to reduce hurdles for changing jobs and facilitate labor mobility.

Publication of childcare leave acquisition status

Currently, employers with over 1,000 employees must disclose childcare leave acquisition rates annually. After April 1, 2025, this requirement will extend to employers with 301 or more employees.

In this case, employees refers to regularly employed workers defined as:

  • Persons employed for an indefinite period
  • Persons who are employed for a fixed period and have been continuously employed by the company for more than one year in the past
  • Those who are expected to be continuously employed by the company for more than one year from the time of hiring

Revisions to childcare-related benefits

Childcare benefits continue to be enhanced with the addition of a Postpartum Leave Support Benefit and Childcare Shortened Working Hours Benefit.

Postpartum leave support benefit

  • Eligibility Requirements: If both parents take at least 14 days of childcare leave immediately after the birth of their child
  • Payment: Daily Wage at Start of Leave x Number of Leave Days x 13% (maximum number of leave days is 28)

Childcare shortened working hours benefit

  • Eligibility Requirements: If an employee works shortened hours to care for a child under the age of two years and experiences a decrease in wages compared to before the shortened working hours
  • Payment: Wages Paid for Each Month During Shortened Working Hours x 10%

Lowering the exclusion rate for the employment of persons with disabilities

After April 1, 2025, many industries subject to disability employment exclusion rates will see the following reductions:

  • Non-ferrous metal primary refining and freight forwarding industries (excluding collection and delivery forwarding industry): 15% down to 5%
  • Construction, steel, road freight transport, and postal industries: 20% down to 10%
  • Port transport and security industries: 25% down to 15%
  • Railway and medical industries, long-term care health facilities, and long-term care medical care facilities: 30% down to 20%
  • Metal mining industry and child welfare business: 40% down to 30%
  • Road passenger transportation industry and elementary schools: 55% down to 45%

* When employers in specific industries calculate the number of people with targeted disabilities (PWTDs) required to be hired, they can exclude a designated percentage as an exemption rate from the actual number of total regular employees.