The Ministry of Health, Labor and Welfare in Japan is proposing revisions to the country’s employment insurance system, aiming to extend coverage to part-time workers and individuals who work shorter hours. The proposed changes, which include lowering the weekly work hour requirement for eligibility from 20 to 10, are intended to provide a safety net for those facing unemployment or other emergencies.
As of the end of fiscal 2022, approximately 44 million people were enrolled in Japan’s employment insurance program, which currently covers individuals working at least 20 hours per week. If the proposed revisions are implemented, an estimated 4.88 million additional individuals would qualify for enrollment in the program.
Under the employment insurance system, enrollees receive benefits based on their last wages in the event of unemployment or when taking childcare leave. The system also provides education and training benefits to support career advancement.
While joining the employment insurance system would impose a new financial burden on both part-time workers and their employers, the government emphasizes the significant benefits, including coverage for unemployment. The need for clear explanations and widespread understanding of these benefits is recognized.
During the COVID-19 pandemic, employment adjustment subsidies were offered to companies retaining employees who were absent from work, highlighting the system’s role in maintaining employment stability.
The proposed revisions also address the issue of balancing work and childcare, with adjustments to benefit rates for individuals on childcare leave. Specifically, couples who both take childcare leave immediately after the birth of their child will see an increase in benefit rates to ensure their take-home pay remains unchanged. This move aims to encourage greater participation of men in childcare responsibilities.
Furthermore, a new benefit provision system is planned for individuals working shorter hours while raising children. To offset the loss of wages resulting from reduced working hours, a subsidy equivalent to 10% of wages will be provided until the child reaches two years of age.
Drawing on examples from Germany and Northern Europe, where flexible work arrangements have reportedly contributed to increased birth rates, Japan seeks to adopt effective measures to address demographic challenges and support families.
