Regularization + Training Double Subsidy: A Practical Plan to Secure Over JPY 1 Million in Government Support Per Employee

An Overview of Japan's Two-Track Grant System

Why apply for both grants together?

The Employment and Development Support Center (雇用・育成サポートセンター) and the prefectural Labour Bureaus each administer numerous grant programs. Many business owners are aware of only one of them, and as a result lose out on tens of thousands of yen in grant opportunities every year.

The Career-Up (Regularization) Grant primarily subsidizes the cost of converting non-regular employees (dispatched workers, contract workers, part-timers) into regular employees. Under the Regularization Course (正社員化コース), a small or medium-sized enterprise (SME) can receive up to JPY 800,000 per person (the amount is determined by the employee's pre-conversion employment type and whether they are a "priority support target").

The Human Resource Development Grant targets employee skills training and qualification acquisition. Depending on the type of training and the employee's status, the expense subsidy rate for SMEs is 45%–75%, with an additional wage subsidy available.

The two grants come from different sources; their eligibility conditions overlap but do not conflict, so with proper structuring you can apply for and receive each separately (note that the same expense cannot be claimed twice).

Career-Up (Regularization) Grant: A Detailed Look at the Regularization Subsidy

Subsidy amounts and payment timing

The Regularization Course (正社員化コース) is the most frequently applied-for category within this program. The amounts for SMEs are as follows:

• Fixed-term employment → regular employee: priority support target JPY 800,000/person (JPY 400,000 × 2 installments); others JPY 400,000/person (lump sum)
• Indefinite-term employment → regular employee: priority support target JPY 400,000/person; others JPY 200,000/person
• "Priority support targets" include fixed-term employees who have been employed for 3 years or more, dispatched workers, single parents, and the like
• The annual application cap is 20 people per business establishment

A real-world scenario: Your company has a Vietnamese employee, Mr. Wang, who worked part-time for three years (making him a priority support target). In April 2024 he was converted to a regular employee. If the conditions are met, you can apply after the 6-month track-record period following the conversion, for up to JPY 800,000 per person for an SME (paid in 2 installments).

The four essential requirements for applying

Requirement 1: An actual change in employment type

• You must have already employed the worker for at least 6 months before applying (3 months for dispatched workers)
• Before conversion, the worker was a dispatched, contract, or part-time employee
• After conversion, a written regular employment contract is signed
• Social insurance enrollment and tax filing status must be updated in step

Requirement 2: A substantive improvement in wages and treatment

• After conversion, the base salary must be higher than before conversion, typically by 3% or more
• It is not enough merely to add benefits (such as a commuting allowance); the increase must be reflected in the base pay
• Within 6 months, wages must not fall below the amount agreed upon at the time of conversion

Requirement 3: Meeting the employment-period requirement

• After conversion, you must continuously employ the worker and retain 6 months of wage and attendance records as proof of the track-record period
• Payment is made in 2 installments: the 1st installment 6 months after conversion, and for priority support targets the 2nd installment a further 6 months later
• Wrongful dismissal during the track-record period, or failure to pay wages as agreed, will affect payment

Requirement 4: Corporate eligibility and procedural compliance

• At the time of application, the company must already be enrolled in employment insurance
• Employment contracts, pay slips, social insurance records, and other documents must be kept complete
• Pay slips and attendance records for the 3 months before and after conversion must be retained for review

Application process and timeline

Conversion date: April 1, 2024
│
├─After 6 months (October 2024): Submit application materials
│  └─Required documents: application form, pre- and post-conversion pay slips, employment contract, social insurance proof
│
├─Within 1–2 months: Labour Bureau review
│  └─May request supplementary materials or an on-site investigation
│
├─After the review is approved: Receive the grant (typically November–December)
│  └─The grant is deposited directly into the company's bank account
│
└─24 months: Employment-period verification completed
   └─If applying for multiple people, prepare for the next round of applications

Human Resource Development Grant: A High-Efficiency Subsidy for Training Investment

Coverage scope and how the amount is calculated

This grant covers a broad range, including:

Off-JT (off-the-job training)

• Courses, seminars, and online classes from external training providers
• Subsidy rate: 75% for SMEs, 60% for large enterprises
• Cap: JPY 1 million per company per year (potentially higher depending on employee count)

OJT (on-the-job training)

• In-house training of new employees by senior staff
• Subsidy amount: a set proportion of the actual training cost
• Includes the wage cost of the training instructor

A real-world case: Your company arranged external training courses averaging JPY 100,000/month for 5 new employees over three months, at a total cost of JPY 1.5 million. If you apply at the SME subsidy rate, you can receive a JPY 1.125 million subsidy (75% × JPY 1.5 million), leaving your company to bear only JPY 375,000.

Training types and selection strategy

Three key points for strategically selecting training courses:

1. Relevance to the company's direction of development: IT skills, language training, management training, and skills-qualification courses all meet the eligibility criteria. Courses unrelated to your business operations (such as art appreciation) are not subsidized.

2. Choose an approved training provider: Not all training qualifies for a subsidy. Courses recommended by the Chamber of Commerce and Industry, corporate training programs offered by universities, government-approved vocational training schools, and the like generally qualify. For online courses, you need to confirm whether the platform is eligible.

3. Keep complete training records: Certificates of attendance, course syllabi, invoices, participant lists, and all other documents must be retained; the government verifies each item during its review.

The key process for applying and claiming reimbursement

Step 1: Advance application (before training begins)
├─Prepare documents: business plan, training course syllabus, cost estimate
├─Submit to the Labour Bureau (review usually within 1 month)
└─Obtain the "Grant Recipient Designation Certificate" (助成金受給予定者証)

Step 2: Conduct the training (proceed as planned)
├─Retain all attendance certificates, invoices, and pay slips
├─Submit periodic progress reports to the Labour Bureau
└─Cooperate with possible mid-term verification (on-site or on paper)

Step 3: Post-training application (within 1 month after training ends)
├─Compile a training summary report
├─Submit: participant list, attendance certificates, full invoices
├─If an employee has resigned, the subsidy amount must be recalculated
└─Final Labour Bureau review (2–3 months)

Step 4: Subsidy payment
└─Payment after the review is approved (usually 3–4 months after application)

A Practical Plan for Combining the Two Grants

The golden timing for a combined application

The optimal scenario: Recruit a group of non-regular employees → put them through systematic training → convert them to regular employees.

A concrete timeline:

| Timing | Action | Grant source | |------|------|---------| | Jan–Mar | Recruit dispatched workers, sign 6-month contracts | None | | Apr–Jun | Arrange off-the-job and on-the-job training for employees | Human Resource Development Grant filing | | Jul | Training completed, convert to regular employees | Preparation for Career-Up Grant filing | | Aug–Sep | Submit the regularization subsidy application | Career-Up Grant under review | | Oct–Nov | The two grants arrive one after another | Both subsidies in place |

A per-employee subsidy calculation example

Suppose you recruit a Vietnamese employee, A Ming, with the following plan:

The Human Resource Development Grant portion:

• Three months of external Japanese-language + job-skills training: JPY 1.2 million
• Company-borne OJT instructor wages (3 months): JPY 300,000
• Total training cost: JPY 1.5 million
• Subsidy amount (SME 75%): JPY 1.125 million

The Career-Up Grant portion:

• Mr. Wang is a priority support target (a fixed-term employee employed for 3 years)
• Fixed-term → regular employee, priority support target, SME: JPY 800,000 (JPY 400,000 × 2 installments)

Combined total for both subsidies: about JPY 1.92 million

In this case, developing and regularizing a single employee secures nearly JPY 2 million in government support for the company.

Key points for avoiding conflicts between the subsidies

Although the two subsidies can be applied for at the same time, please note:

1. Training costs cannot be claimed twice: If training has already been claimed under the Human Resource Development Grant, the same expense cannot be claimed again under the Career-Up Grant's "medium-to-long-term career formation support" heading.

2. Sensible timing of the employee's conversion: It is best to apply for regularization only after the training has ended; this is cleaner both in timing and in logic, and reduces headaches during the review.

3. Confirming the 2-year employment obligation: Both subsidies impose requirements on the post-conversion employment period. If the employee resigns within 2 years, you may have to return part of the subsidy.

4. Coordination across departments: Training applications are usually handled by HR, while regularization applications are handled by the labor affairs department. The company must build an internal communication mechanism to avoid information gaps.

Frequently Asked Questions (FAQ)

Q1: My company has only 5 employees in total—can we still apply for these subsidies?

A: Absolutely. Japanese government grant programs impose no strict lower limit on company size. In fact, SMEs (those with 300 or fewer employees) actually enjoy a higher subsidy rate in many programs. Take the Human Resource Development Grant: the off-JT subsidy rate is 75% for SMEs but only 60% for large enterprises. Small business owners should be all the more proactive in taking advantage of these policy benefits. The key is to ensure the company is already enrolled in employment insurance and has complete employment contracts and wage-payment records. If your company was founded less than a year ago, you may need to wait until you have been enrolled in employment insurance for a certain period before applying. We recommend first consulting your local Labour Bureau or Chamber of Commerce and Industry to confirm the specific eligibility requirements.

Q2: I'm already a regular employee but hold no qualifications—can I apply for the Human Resource Development Grant to subsidize my training?

A: Yes. The Human Resource Development Grant imposes few restrictions on employee status; any regular employee of the company (or an eligible non-regular employee) can take part in subsidized training. Many companies use this subsidy to upgrade the skills of their existing regular employees—for example, project management certifications, programming courses, or language training. Note, however, that the training content must be relevant to the company's operations. If you run a restaurant business, an employee taking a hairdressing course probably would not meet the subsidy criteria. In addition, the qualifications of the training provider matter—not just any training class can be claimed. We recommend choosing courses recommended by the Chamber of Commerce and Industry, university corporate-training programs, or government-approved vocational training schools. Before applying, be sure to confirm that the training provider you choose meets the qualification requirements of the Ministry of Health, Labour and Welfare.

Q3: An employee resigned while receiving a training subsidy—do I have to return the entire subsidy?

A: It depends on the situation. If the employee resigns during the training, the subsidy already disbursed usually has to be returned on a pro-rata basis. The proportion returned depends on the share of the training the employee completed. For example, if only one month of a three-month training was completed before resignation, you may have to return 2/3 of the subsidy. However, if the resignation was caused by unlawful conduct on the company's part (such as failure to pay wages or a violation of labor law), the government may not require a return during its review. For the Career-Up Grant, if you wrongfully dismiss the employee during the 6-month track-record period, you will not be able to receive the grant; and if it is found after receipt that the grant was improperly claimed, it must be returned. This is a protective clause the government has put in place to prevent companies from fraudulently obtaining subsidies. We therefore recommend that companies carry out a thorough assessment when recruiting and regularizing, choose stable employees, and create a good working environment to lower the turnover rate. At the same time, maintain regular communication with employees to understand their career-development intentions.

Q4: We were asked to undergo an on-site investigation as part of applying for the two subsidies—what does the company need to cooperate with?

A: The on-site investigation is an important step by which the government prevents subsidy fraud, and how well your company cooperates directly affects final approval of the subsidy. The investigation typically covers: (1) verifying the employee's actual work situation—the Labour Bureau will sample-check employees, asking about their daily work content and the specific changes before and after conversion; (2) inspecting pay slips and bank transfer records—to ensure the wage increase claimed in the subsidy actually took place; (3) reviewing the original employment contract—to verify that the contract terms match what was filed; (4) where training is involved, the investigator will review attendance certificates, course evaluation forms, and attendance records; (5) confirming social insurance enrollment status—verifying that the employee's social insurance and tax registration match the filing. We recommend that companies prepare in advance: organize all relevant documents in chronological order, ensure the data is consistent, and if an employee has a language barrier, arrange a translator in advance. Most investigations are friendly; their purpose is to confirm the facts, not to make things difficult for the company. Honest cooperation usually poses no problem.

Q5: I'd like to apply for subsidies for 10 employees at the same time—is there a quantity limit?

A: For the Career-Up Grant within a single fiscal year, the number of applications under the Regularization Course is limited to 3 people per year (this may be adjusted under the latest policy). So if you want to apply for the regularization subsidy for all 10 people, you will need to spread it across fiscal years—for example, 3 people in 2024, 3 in 2025, 3 in 2026, and 1 in 2027. The Human Resource Development Grant is different: it has no clear annual cap on the number of trainees, but it does have an annual cap on the total subsidy amount, typically JPY 1 million per company (which may be adjusted by region and company size). In other words, if you have many people who need training, once the cumulative subsidy amount reaches JPY 1 million, you cannot apply for a new training subsidy until the next fiscal year. We recommend prioritizing your core employees for training and regularization, and building them up as a focus—this both maximizes your use of the subsidy and yields the best talent-development results.

Special Considerations for Chinese Business Owners

The subsidy eligibility of foreign employees

Chinese business owners in Japan frequently employ foreign staff from China, Vietnam, the Philippines, and elsewhere. The good news is that foreign employees are equally eligible for both subsidies, provided that they:

• Hold a valid status of residence and work visa
• Are already enrolled in employment insurance in Japan
• Have complete tax-filing records
• Comply with Japanese labor law (including the minimum wage, working hours, etc.)

Many Chinese business owners report that using subsidies to support the skills upgrading and regularization of foreign employees both lowers costs and builds a stable, diverse team. This is especially the case for employees who struggle with language or cultural integration, for whom systematic training subsidies are all the more important.

Language issues in the application materials

In principle, all documents required by the government must be in Japanese or English. However:

• If an employee's separation certificate, degree certificate, or other original documents are in Chinese, a Japanese translation must be provided
• The translation need not be an officially certified translation, but the content must be accurate
• You can get help from a professional translation company or a local chamber of commerce

Summary of Key Application Timing Milestones

• Q1 (Jan–Mar): Take stock of your company's staffing structure and prepare the recruitment and training plan for the new fiscal year
• Q2 (Apr–Jun): If there are new hires, promptly apply for the training subsidy under the Human Resource Development Grant
• Q3 (Jul–Sep): The golden period for the regularization subsidy application—complete the relevant procedures
• Q4 (Oct–Dec): The prior fiscal year's subsidies arrive one after another; prepare for the next fiscal year's planning

Conclusion

For Chinese business owners in Japan, making full use of the government's talent-subsidy policies is not only a financial saving but also an investment in the company's long-term competitiveness. By properly combining the Career-Up Grant and the Human Resource Development Grant, a single employee really can bring the company over JPY 1 million in support—and when that money is used for employee development, the ultimate return is a more professional, more stable team.

But applying for subsidies involves many stages, countless details, and a complex review process. Labour Bureaus in different regions and the specific circumstances of different companies will also vary. If you have any questions during the application process, or need a personalized subsidy-application plan tailored to your company's actual situation, we welcome you to consult our professional advisory team for free. We have many years of experience with Japanese subsidy applications, are familiar with the special needs of Chinese-owned businesses, and can help you devise the optimal application strategy to maximize the government subsidies you obtain.

Contact us now and secure the government support your company and employees deserve!