The Japanese government has announced updates to the Employment Insurance Act, set to take effect on April 1, 2025. Some provisions will have different starting dates, as explained below. These revisions aim to strengthen job security, improve career growth opportunities, and maintain stable funding for childcare leave benefits.

Main Adjustments in the Employment Insurance Act

1. Broader Access to Employment Insurance

The minimum weekly work hours required for employment insurance eligibility will drop from 20 hours to 10 hours, allowing more part-time workers to qualify.

2. Better Support for Skill Development

Employees who leave their jobs voluntarily will now be eligible for benefits related to education and training without restrictions.

The education and training benefit rate will be revised to encourage participation:

1. Basic benefit rate lowered from 80% to 60% (temporary measure until the end of FY2026).
2. A new financial support system will assist insured individuals who take educational leave for career improvement.

A performance-based bonus (10%) will be provided to individuals who complete training programs and achieve higher wages or certifications.

3. Adjustments to Employment Promotion and Retention Payments

Employment promotion allowance will be modified, including the cancellation of the employment allowance and the reduction of the maximum payment limit for employment promotion and retention benefits.

4. Changes to Childcare Leave Benefits and Insurance Premiums

A flexible insurance premium system will be introduced, allowing the childcare leave insurance premium rate to shift between 0.4% and 0.5%, depending on financial conditions.

The government will end the temporary reduction of its contribution to childcare leave benefits, ensuring steady funding.

5. New Subsidies for Parents and Senior Workers

Two new subsidies will be introduced:

1. Postpartum leave subsidy for employees taking leave after childbirth.Childcare shortened employment subsidy to assist parents who choose shorter working hours.
2. Childcare shortened employment subsidy to assist parents who choose shorter working hours.

The employment continuation subsidy for elderly workers will be lowered from 15% to 10%.

6. Special Measures for Job Seekers and Regional Allowances

Special rules will be applied to unemployment benefits for employees who lose jobs due to contract termination.

Temporary measures extending regional unemployment allowances will continue until the end of FY2026.

Schedule for Implementation

1. April 1, 2025: Most revisions take effect.
2. October 1, 2024: Adjustments to education and training benefits begin.
3. October 1, 2025: Education and training leave benefits will be introduced.
4. October 1, 2028: Expansion of employment insurance coverage (reducing required work hours from 20 to 10 per week).

Final Notes

These revisions to the Employment Insurance Act will extend coverage, improve access to skill-building opportunities, and ensure financial stability for childcare leave benefits. With these updates, Japan aims to create a more inclusive and supportive workplace, accommodating different work styles and career aspirations.