News Details
2025.06.20
Subsidy for Promoting Work Style Reform
(Support Course for Reducing Working Hours and Encouraging Annual Paid Leave)
1. Introduction
This month, we would like to share information about the “Subsidy for the Promotion of Work Style Reform (Support Course for Working Hours Reduction and Annual Leave Promotion).”
This subsidy is intended to support small and medium-sized enterprises in their efforts to improve productivity while promoting the reduction of working hours and the use of annual paid leave.
Please note that this is only a summary, but feel free to contact us for more details or changes.
2. Subsidy Details
■ Eligible Applicants (must meet all the following conditions):
•SMEs covered under workers’ accident compensation insurance
•Must meet the specified performance targets (*see below) at the time of application
•Must have implemented systems to ensure that employees take at least 5 days of paid leave annually
■ Eligible Initiatives (implement at least one of the following):
•Training for Labor Management staff
•General employee training and awareness activities
•Consulting by external professionals such as labor and social security attorneys
•Revision of Work Rules or agreements
•Measures to secure and retain personnel
•Introduction of labor management software or equipment
*Some exclusions include PCs and smartphones.
■ Performance Targets (choose at least one):
•Target 1: Setting and reporting overtime and holiday work under Article 36 Agreement to
within 60 or 80 hours per month
within 60 or 80 hours per month
•Target 2: Introduction of a system for granting planned annual paid leave
•Target 3: Introduction of hourly paid leave and special leave
(e.g., for employees requiring special consideration)
(e.g., for employees requiring special consideration)
*Increasing hourly wages for specific employees can also be counted as a performance target.
■ Subsidy Amount (subject to limits based on achievement of performance targets):
•Subsidy Rate: 3/4 or 4/5 of the implementation costs
•Target 1: Up to JPY 1,500,000 (varies depending on current status)
•Targets 2 & 3: JPY 250,000 each
•Wage Increase: Up to JPY 7,200,000 (varies by number of employees and increase rate)
*The default subsidy rate is 3/4. It may increase to 4/5 for small businesses implementing certain initiatives.
3. Application Procedure
Application Steps:
1. Submit Application Form by November 28, 2025 (must arrive by this date)
2. Implement the Project by January 30, 2026
3. Apply for Payment within 30 days of project completion or by February 6, 2026, whichever is earlier
*Application may close early depending on budget availability.
4. Items Requiring Amendments to the Employment Rules
1) Expansion of Eligibility for Child Nursing Leave
2) Expansion of Exemptions from Overtime
3) Introduction of Remote Work and Other Flexible Work Arrangements (Obligation of Effort)
4) Measures to Prevent Caregiver-Related Resignations
5) Measures to Achieve Flexible Work Styles (Effective October 2025)
【 ARK Social Insurance and Labor Advisors Corporation 】
We are available to help you with the application process.
We can also assist you if have been affected by the recent changes to the childcare and caregiving leave laws. please don't hesitate to reach out to us.
Query on the phone+81-3-6821-9455