HR-Focused MHLW Grants 3/3: Business funding for productivity initiatives

'Work style reform' promoting grant up to ¥2m

MHLW offers a grant to support companies implementing 'Work Style Reform' (Hatarakikata-kaikaku). This grant can fund various expenses related to improving work-life balance, such as employees' training and implementing new software and hardware to streamline operations and boost productivity. Eligibility is based on achieving specific 'Outcome Goals' related to the Agreement on Overtime and Holiday Work ('36 Agreement' or 36 Kyotei), which regulates overtime and holiday work.

In Japan, the terms 'hojokin' (補助金) and 'joseikin' (助成金) both translate to 'subsidy' in English, particularly in the context of the government programme. For clarity, in Small Business Japan, we will use 'subsidy' when referring to hojokin (typically from the METI) and 'grant' when referring to joseikin (typically from the MHLW).

We sought the expertise of Mr Tomohiko Narai, a sharoshi, to understand the procedures and key points.

You can also contact Mr Narai for further assistance via his corporate website.

Grants for companies converting fixed-term employees to full-time

In the previous article, we introduced an MHLW grant available to companies that employ single mothers and people with disabilities, which can be used for HR purposes. This article explains the grants available to companies that convert fixed-term employees to full-time status.

Small Business JapanYumiko Horie

Act now and complete by the end of March to qualify for next fiscal year's grant

[Summary] Companies can receive grants for initiatives that improve productivity, reduce working hours, and encourage employees to take annual leave.

[Grant details and amount] A wide range of expenses related to work style reform are eligible. 75% of eligible costs or 80% for companies with 30 or fewer employees that spend over ¥300,000. Successful completion of Outcome Goal 1 qualifies for a grant of ¥2 million maximum, plus potential additions for wage increases.

'Outcome Goals' and other conditions

To receive the grant, companies must meet one or more of the following 'outcome goals':

For details, see the next section.

[Eligibility] Companies must set and achieve 'Outcome Goals' (see below). Attendance records (出勤簿, or shukkinbo) and wage ledgers (賃金台帳 or chingin-daicho) are also required.

[Eligible Businesses] Small and Medium-sized Enterprises (SMEs) that meet all of the following criteria:

1. The company is covered by workers' compensation insurance.
2. The business meets more than one of the requirements for Outcome Goals 1, 2, and 3
3. At the time of grant application, all the workplaces have written policies and procedures in place that guarantee employees at least 5 days of annual paid leave.

SME Definition: A business qualifies as an SME if it meets either A or B of the following criteria:

[To receive the grant: Act now] Employers must review the annual paid leave clause in their work regulations and the agreement on overtime and holiday work ('36 agreement', or 36 kyotei) as soon as possible. To be eligible for the next fiscal year, starting in April, complete at least one of the outcome goals above by the end of this fiscal year in March 2025. These changes will be applied from the next fiscal year.

Grants for hiring single moms & individuals with disabilities

While Small Business Japan has typically focused on subsidies from the Ministry of Economy, Trade and Industry (METI), this article introduces those provided by the Ministry of Health, Labour and Welfare (MHLW), which promote the improvement of the working environment and conditions at companies.

Small Business JapanYumiko Horie

Grants for a wide range of expenses up to ¥2m