Government Subsidies For Employment Adjustment Related To COVID-19

Government subsidies for employment adjustment: A system that subsidizes furloughed workers’ pay when, due to economic reasons, business operators can no longer avoid contracting their operations.

1. Employment Adjustment Grant  (雇用調整助成金)

This program subsidizes some wages and furlough allowances when business operators that can no longer avoid the contraction of their operations due to economic reasons, including the impact of COVID-19, wish to maintain employment for their workers through temporary furloughs, education and training, or secondment.

Examples of likely economic reasons are the following:

• After business partners have contracted their operations due to the impact of COVID-19, a

• business operator contracted its operations due to a reduction in order volume.

• A business operator voluntarily took leave and contracted its operations after receiving a call for voluntarily reduced operations from the authorities.

• Customer numbers fell due to self-imposed quarantine by residents.

• Customer numbers fell, along with successive tourist cancellations that were due to damage caused by misinformation.

• A business operator contracted its operations due to a voluntary office closure after employees contracted an infectious disease.

Business operators can utilize increased subsidy rates, the standard number of payment days, and additional options for subsidies for employment adjustment.

Requirements for subsidy:

- Decline in the business by 5% or more over one month

Eligibility

Insured employees, Includes subsidies for furloughs for workers who are not enrolled in employment insurance (not including President/Senior Management/BOD etc.)

Subsidy rate

For SMEs: 4/5 of an employees salary

For Large corporations: 2/3 of an employees salary

When not conducting layoffs:

For SMEs: 9/10 of an employees salary- with a maximum cap of ¥8,330 per day For large corporations: 3/4 of an employees salary

Maximum days payable:

- 100 days for one year

- 150 days for three years 

+ Paid holidays between April 1, 2020 and June 30, 2020

Required documents:

Written plan including:

- Agreement of paid holidays during coronavirus affected period

- Business activity and employment plan during the C-19 situation

- All Employment data (check with local insurance office what is needed)

- Agreement of training during coronavirus affected period (if training held)

To be submitted to your local Labor office along with an application form.

For more information or help contact info@equiomgroup.jp or your account manager.

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2. Aid for parents who need to stay home to care for their school children (小学校対応等助成金)

This grant is paid to employer granting the employees paid holidays other than annual holiday when they should care for their nursery - elementary school children staying at home due to spread of coronavirus.

Applicable children:

Elementary school children include those of all special school, after-school childcare, kindergarten, nursery center.

Benefit amount Full daily wage /Full payment of paid holiday (maximum ¥8,330 /day)

Applicable period:

April 1, 2020 to June 30, 2020

How to Apply

- Contact your local labor bureau for exact conditions and requirements

For more information or help contact info@equiomgroup.jp or your account manager.

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3. In the case of companies who can't pay out social insurance premiums:

In the event that paying social insurance premiums could lead to cash flow problems, the government may approve asset conversion or payment deferments.

To use the deferment programs, business operators must submit an application to the Pension Office within six months from the deadline of the insurance premiums.

For more information or help contact info@equiomgroup.jp or your account manager.

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The Government has also promised:

1. As part of the above expansion, the government will ease the requirements for short-term general furlough, suspend overtime offset rules, bolster administrative processing systems to accelerate payments, and simplify procedures.

2. To take additional measures to raise supplemental budgets to meet the needs of education and training for insured persons who require it.

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Disclaimer

Please note that information is changing daily and we advise to check regularly with the relevant government websites. The information contained in this website is for general information purposes only. The information is provided by Equiom Japan K.K. and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk

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