Japan's Ministry of Health, Labour and Welfare has announced a reduction in the employment insurance premium rate from 1.45% to 1.35% starting April 1, 2026, marking the second consecutive year of decline due to improving employment conditions.
On June 26, 2023, Japan's Ministry of Health, Labour and Welfare confirmed a decrease in the employment insurance premium rate, moving from 1.45% to 1.35%. This decision reflects continued improvements in the employment situation and an increase in reserve funds that support the system. The new rate will be implemented on April 1, 2026, benefiting workers by reducing their financial contributions to insurance during a period of favorable economic conditions.
The Labor Policy Council's subcommittee reviewed the proposed rate cut and deemed it 'generally appropriate'. As a direct impact of this adjustment, workers earning a monthly salary of 300,000 yen will see their monthly insurance payment decrease from 1,650 yen to 1,500 yen, effectively providing some relief amid rising living costs. Additionally, the premium for unemployment benefits will drop from 0.7% to 0.6%, equally shared between employers and employees, helping further support job seekers.
The adjustments include maintaining the premiums for child-rearing leave benefits at 0.4%, while the portion allocated for employment adjustment subsidies remains unchanged at 0.35%, which is solely borne by employers. This change not only signifies a more prosperous labor market but also optimizes the support mechanisms for employees, fostering a more resilient workforce.
