Japanese Government Wage Subsidies: Updated Feb. 8, 2024

 

Japan gov't mulls subsidizing wages for staff working less hours to care for kids under 2

Article Source: https://mainichi.jp/english/articles/20231129/p2a/00m/0bu/035000c

Article:

TOKYO -- Japan's labor ministry is considering subsidizing 10% of wages for those who work shorter hours to care for children under 2 years old, and aims to introduce the system from fiscal 2025.

The grant amount was set based on wages for shorter hours so as not to exceed what they would earn if working full time, to ensure fairness with other staff. Following discussions between labor and management, the plan will be included in a draft amendment to the Employment Insurance Act to be submitted to next year's ordinary Diet session.

Ideas:

This might be a good idea, as work/life balance, especially for families is not so good in Japan. The challenge will be will working women or even working men, take advantage of the subsidy, as Japanese workers are often reluctant to take time off.

And will companies allow workers to take time off, even if allowed by law will companies put pressure on workers to keep working.

Even at 10% of wages, it might not be enough of an incentive for some workers to take time off. It all depends on the relationship between workers and the company. 

It must be considered, for those without families or children, will think or feel they are not getting a fair deal having to work.

Article:

The "child care shortened working hours benefit," which is still tentatively named, will be established under employment insurance. Eligible workers would be those who are covered by employment insurance and whose income has dropped because they chose to work shorter hours to raise children under the age of 2.

According to a survey by the Ministry of Health, Labor and Welfare, half of all full-time female employees either use or had used shorter working hour systems for child care. Since wages tend to be lower with that work style compared to full-time employment, the subsidy program aims to support their livelihoods.

Ideas:

Even if the program is passed, as usual, it might not be what the original idea was/is as there are always negotiations between the different parties on government.

And unfortunately, The number of female executives in Japan is very low and its not surprising as there are few women in management positions in Japan. 

Because it might take a long time, and many many hurdles for working women in Japan to move into management positions, maybe many don't even try. 

But there are a few like to new JAL women president, who moved steadily up the ladder to eventually become the first female president of Japan Airlines. 

Article:

On the other hand, there are concerns that this may encourage "mommy track," in which employees who choose to work shorter hours may slide down the career ladder. For this reason, the government intends to keep the level of subsidies low and ensure that the system does not impede career development.

The creation of such benefits is part of the government's efforts to address the declining birth rate, and was included in the "Children's Future Strategy Policy" approved by the Cabinet in June.

Ideas:

Yes, this is definitely a possibility as the "mommy track" women might be labeled as not future management candidates.

The Japanese government might try to keep the level of subsidies low, but maybe once a women is labeled in the "mommy track" it might be hard to get rid of the label in a company.

Giving subsidies for working women who want to have children might not be enough to address Japan's low birthrate.

Young women, today, especially in Japan South Korea, don't want to have children, as raising children has become too costly, with increased education costs, such as after school programs as specialized academies to help students keep up with their peers.  

There is no easy solution for both countries as the birth rate in both countries are the lowest in OECD countries.

Have a nice day and be safe!