Subsidies and Support 

1) Understanding Subsidies and Grants 

Understanding Subsidies and Grants

When searching for employment opportunities in Japan, it's essential to be aware of the various support programs available to job seekers. One significant distinction to understand is the difference between subsidies and grants.

Subsidies: Subsidies are financial aids offered to individuals to help stabilize employment and develop human resources. These are administered by the Ministry of Health, Labor and Welfare.

Grants: On the other hand, grants are administered by the Ministry of Economy, Trade and Industry and local governments, with the goal of promoting projects recognized as being in the public interest.

In most cases, both subsidies and grants do not require repayment. However, securing subsidies can be more challenging, as they involve a rigorous selection process within a set timeframe.

2) Subsidies for Job Seekers

For those seeking employment in Japan, it's crucial to be aware of subsidies designed to support foreign workers.

 These subsidies are intended to help employers integrate foreign workers into their workforce, considering the unique challenges they may face due to language and cultural differences.

a) Requirements for the Subsidy

Employers must hire foreign workers, regardless of their residence status.

Employers must introduce and implement specific working environment measures based on an approved plan. These measures include appointing an employment and labor representative, translating internal regulations into multiple languages, establishing a complaint and consultation system, creating a leave system for temporary return to Japan, and multilingualizing company manuals and signs.

The turnover rate of foreign workers must be 10% or less after a certain period following the improvement plan's completion.

To apply for these subsidies, employers need to prepare a working environment improvement plan and submit it to the Prefectural Labor Bureau.

b）Amount of Subsidy

The subsidy amount depends on whether certain production requirements are met. If not met, it can cover half of the eligible expenses (up to 570,000 yen). If met, it covers one-third of the eligible expenses (up to 720,000 yen).

Eligible expenses include interpretation expenses, translation equipment installation, translation fees, outsourcing fees for attorneys and labor consultants, installation and repair of in-house signage, and more.

If you're seeking employment in a company facing economic challenges, the Employment Adjustment Subsidy is worth considering. 

This subsidy aims to reduce employment insecurity by preserving jobs through measures such as leave of absence, education, training, and secondment.

a）Payment Requirements

• Employers must be covered by employment insurance.

• Sales or production in the last three months must have decreased by 10% or more compared to the previous year.

• The number of employees in the last three months must not have increased significantly compared to the previous year.

• The company must protect employment through leave of absence, education and training, or secondment.

• There must be at least a one-year gap since the worker previously received an employment adjustment subsidy.

• Workers must have been with the same business site for at least six months before the leave of absence or secondment begins.

b) Amount of Benefits Received

Small and medium-sized enterprises receive two-thirds of the equivalent of wages, while non-small and medium-sized enterprises receive half. As of August 1, 2022, the maximum benefit per worker is 8,355 yen, with an additional 1,200 yen per person per day if education and training are provided.

Subsidy for Employment Development of Specified Job Seekers

If you're facing challenges in finding employment, such as being older, having a disability, or being a single parent, you may be eligible for the Subsidy for Employment Development of Specified Job Seekers. This subsidy supports employers who hire individuals referred by Hello Work or other channels.

Payment Requirements:

New employment through Hello Work or a private employment agency.

The new employee must be generally insured by employment insurance, and employment continuity must be certain.

a) Amount of Benefits Received

The subsidy amount varies depending on the category of the new employee, such as 600,000 yen per year for persons 60 years or older or single parents, and 1.2 million yen for physically or intellectually disabled persons over two years.

4) Career Upgrade Subsidy

If you're a part-time or non-regular employee looking to improve your employment status, the Career Upgrade Subsidy might be of interest. 

It aims to enhance treatment for part-time and non-regular employees and can help you transition to regular employment.

a）Payment Requirements

Employers must take specific actions like converting non-regular workers into regular employees, changing fixed-term contracts to indefinite ones, or hiring temporary workers directly.

The program typically applies to those with permanent resident status and may not be applicable to certain other residence statuses

b）Amount of Benefits Received

The subsidy amount varies based on the type of employment change, such as 570,000 yen for converting fixed-term employment to permanent employment.

6）Trial Employment Subsidy

If you're looking to gain work experience and assess your aptitude, the Trial Employment Subsidy can be valuable. This program supports trial employment for job seekers who may face difficulties in securing stable employment.

a)Requirements for the Grant

• Trial employment must meet specific conditions, including being organized through Hello Work or an employment agency, lasting for three months, and requiring at least 30 hours of work per week.

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• Workers must meet certain criteria, such as changing jobs multiple times within the past two years, being unemployed for over a year, facing difficulties in obtaining stable employment, or being in need of special consideration.

◎Amount of Benefits

The subsidy amounts to 40,000 yen per month per eligible person, with an increased amount of 50,000 yen per month for single-parent families. The maximum is paid for three months, with reductions for workers leaving during the trial period.

These subsidy programs and support systems are valuable resources for job seekers in Japan. Despite the challenges, they can contribute to your career growth and development, making them worth exploring as you seek employment opportunities in Japan.