What Is the Trial Employment Grant?
The Trial Employment Grant is a program introduced by Japan's Ministry of Health, Labour and Welfare to promote employment and support companies in developing their human resources. Put simply, when you employ a qualifying worker during a trial period, the government pays your company a set amount of subsidy each month.
The core logic of this program is clear: a company needs a trial period to assess whether an employee is truly suited to the role, and the government provides economic support for this assessment period, thereby encouraging more companies to be willing to give opportunities to people who may face employment difficulties.
Key features:
- The subsidy period is up to 3 months (can be extended to 6 months upon application)
- The monthly subsidy is 8,500日元/person (standard amount) or 12,000日元/person (specified targets)
- Eligible individuals include the unemployed, the long-term unemployed, those facing financial hardship, and others
- Application and management are relatively simple, and small and medium-sized enterprises can fully handle it
Eligible Targets and Conditions for the Trial Period Subsidy
Conditions the Company Must Meet
Not every company can apply for the Trial Employment Grant. Your company must meet the following basic conditions:
1. Company size and legal status
- Can be a kabushiki kaisha (stock company), a godo kaisha, or a sole proprietorship's business establishment
- There is no explicit company-size limit; small and medium-sized enterprises are equally eligible
- Must have complete employment contract records and a wage management system
2. Compliance requirements
- No major labor law violations in the past 3 years
- No serious violations such as breaching the Minimum Wage Act or overtime work rules in the 12 months before applying
- Not placed on any blacklist or having a poor credit record
3. Rules for the trial period
- A formal fixed-term trial employment contract signed with the employee
- The trial period is at most 3 months (for the first application)
- The wage during the trial period must not be below the local minimum wage standard
- There must be clear assessment criteria for the trial period
4. Financial and management requirements
- Able to provide complete wage payment records and tax filings
- Has established a basic HR management system
- Able to cooperate with investigations and reviews by the relevant authorities
Conditions the Employee Must Meet
The Trial Employment Grant is mainly intended to help certain specific groups find employment. An employee who meets any one of the following conditions can benefit from this subsidy:
1. The unemployed
- Left their previous company and received unemployment insurance benefits or registered as unemployed
- Was in a state of unemployment in the month before the application
2. The long-term unemployed
- People who have been unemployed for more than 6 months
- Long-term job seekers aged 40 or older
3. Specific hardship groups
- Heads of single-mother households
- Those in financial hardship or economic difficulty
- People with physical or mental disabilities
- Former inmates or people in rehabilitation
4. New employees who need support
- People who have not been employed since graduating from school
- People who left a job within the two years before the application date and have not been re-employed
The Amount and Payment Method of the Trial Period Subsidy
Specific Subsidy Amounts
Japan's Trial Employment Grant has relatively fixed subsidy standards, but they differ slightly by employee category:
Standard subsidy amount:
- 8,500日元/person per month
- Paid for up to 3 months, for a total of at most 25,500日元/person
Increased subsidy amount (applicable to specified targets):
- 12,000日元/person per month (including people with physical or mental disabilities, heads of single-mother households, and other specific hardship groups)
- Paid for up to 6 months (if extension conditions are met), for a total of at most 72,000日元/person
Payment Process and Cycle
Payment cycle: Paid monthly, usually disbursed uniformly on a specific date each month
Payment steps:
- The company submits the application (in the first payment month after the employee joins)
- The competent authority reviews it (usually takes 1–2 weeks)
- After approval, payment is made monthly (starting from the month of approval)
- Before the payment period ends, the final report is submitted
- After payment is completed, you can apply for a refund or other subsidies
Example: Suppose you employed a qualifying unemployed person in April 2024 and signed a 3-month trial employment contract (April–June). Calculated at the standard amount, you will receive an 8,500日元 subsidy in each of April, May, and June, for a total of 25,500日元. If this employee belongs to a specific hardship group (such as a person with a physical or mental disability), the monthly subsidy may be increased to 12,000日元, for a total of 36,000日元 over 3 months.
Note: The Subsidy Does Not Go Directly into the Company's Account
Important reminder: This subsidy is not automatically paid into your company's account. You must proactively submit an application and related documents to your local Public Employment Security Office (ハローワーク). Payment of the subsidy tends to lag behind the actual employment period; it usually takes 1–2 months to receive the first payment.
The Complete Process for Applying for the Trial Period Subsidy
Preparation Before Applying
Step 1: Confirm the employee's eligibility
- Make sure the employee you recruit meets the aid conditions (unemployed, long-term unemployed, etc.)
- Ask the employee for proof of unemployment insurance receipt or proof of unemployment registration
- Confirm the employee's past work history and period of unemployment
Step 2: Prepare the employment contract documents
- Sign a written fixed-term trial employment contract with the employee (mainly in Japanese)
- Clearly state the trial period term in the contract (at most 3 months)
- Clearly list the wage, job duties, and assessment criteria for the trial period
- The contract must be signed by both parties, with each holding a copy
Step 3: Organize company documents
- Prepare the company's business license (営業許可証) or corporate registry
- Collect wage payment records for the past 12 months
- Prepare tax filing proof and social insurance payment proof
- Organize the company's HR management rules or work rules
The Formal Application Stage
Step 4: Submit the application to the Public Employment Security Office
- Where to apply: The Public Employment Security Office (ハローワーク) nearest to the employee's residence or the company's location
- When to apply: During the month the employee joins or at the beginning of the following month
- Required documents:
- Trial Employment Grant payment application form (トライアル雇用助成金支給申請書)
- Employment contract (雇用契約書, a copy)
- Unemployment insurance benefit eligibility certificate (失業保険受給資格者証) or a document certifying that the person received unemployment certification (失業の認定を受けたことを証する書類)
- The company's business license (営業許可証) or corporate registry
- Wage payment records for the most recent 3 months (直近3ヶ月の給与支払い記録)
- Attendance records (出勤記録)
Step 5: Document review
- After receiving the application, the Public Employment Security Office conducts a formal review (1–2 weeks)
- It may request supplementary materials or conduct an on-site investigation
- It confirms the company's past record and assesses compliance
Step 6: Approval and first payment
- After the application is approved, a Trial Employment Grant payment decision notice (トライアル雇用助成金支給決定通知書) is issued
- Payment of the subsidy begins from the month after approval
- Payment is usually made by bank transfer (振込), with the funds transferred into the company's account
Reporting Obligations During the Payment Period
Monthly reports:
- Each month, you must report to the Public Employment Security Office on the employee's attendance and wages
- This is usually submitted together with the payslip
- If the employee leaves or the trial period ends early, you must notify them immediately
Final report:
- In the month after the trial period ends, submit the Trial Employment Grant payment completion report (トライアル雇用助成金支給終了報告書)
- Report whether the employee passed the trial and whether they will continue to be employed
- Submit the last period's wage and attendance records
Real Cases: An Analysis of Chinese-Owned Companies' Applications
To help you understand the process more intuitively, let's look at two real cases:
Case 1: A Successful Application by a Chinese Restaurant
Company situation: A Chinese restaurant (a limited company) in Shinjuku Ward, Tokyo, with about 15 employees.
Recruitment background: The existing chef left for family reasons, and the owner, Mr. Li, recruited a chef named Mr. Wang through the ハローワーク—someone who had worked in China's restaurant industry and had been unemployed in Japan for 3 months.
Application process:
- Mr. Li signed a 3-month trial employment contract with Mr. Wang, at a monthly wage of 25万日元
- Mr. Wang provided proof of unemployment insurance receipt
- In the first month after Mr. Wang joined, Mr. Li submitted the application materials to the Shinjuku ハローワーク
- Two weeks later he received approval, and from the second month onward received an 8,500日元 subsidy each month
- Over three months, he received a total of 25,500日元 in subsidy
- After the trial period ended, Mr. Wang smoothly became a regular employee
Benefit analysis: Although the monthly subsidy amount is not large, for an industry like food service—with high labor costs and low profit margins—this subsidy covered 5–10 days of labor costs, and also reflected the government's support for the company. More importantly, Mr. Li thereby had the chance to assess the employee's actual ability at relatively low risk.
Case 2: A Specified-Target Subsidy in Manufacturing
Company situation: An electronic parts manufacturer (a kabushiki kaisha) in Saitama Prefecture, with about 40 employees.
Recruitment background: The company needed to add a production line and recruited Mr. Li, a person with a physical or mental disability (holding a physical disability certificate), who had been unemployed for more than 1 year.
Application process:
- The company's HR department signed a 6-month trial employment contract with Mr. Li (which can be extended under the specified-target policy)
- Mr. Li provided a copy of his physical disability certificate and proof of unemployment registration
- When the application was submitted, because Mr. Li belonged to a specific hardship group, the increased subsidy amount applied
- The monthly subsidy was 12,000日元, for a total of 72,000日元 over 6 months
Benefit analysis: This company had originally been hesitant about employing a person with a physical or mental disability, but this subsidy policy gave them a low-risk chance to try it out. After 6 months of development, Mr. Li became a core employee of that production line. This not only reflected the company's social responsibility but also genuinely created value for the company.
Frequently Asked Questions (FAQ)
Q1: My company was once investigated and penalized for a labor law violation. Can I still apply for the Trial Employment Grant?
A: It depends on the severity and timing of the violation. Companies applying for the Trial Employment Grant must meet an important condition: no major labor law violations in the past 3 years. If your company did have a serious violation in the past 3 years (such as withholding wages, failing to pay overtime for excessive working hours, or breaching the Minimum Wage Act), you will very likely be deemed ineligible to apply.
But if the violation has been corrected, and it has been more than 3 years since the current application, or the violation was relatively minor (such as a one-time insufficiently proper arrangement of working hours that has since been corrected), you may still be able to apply. The safest approach is, before formally applying, to consult your local Public Employment Security Office or Labor Standards Inspection Office and explain your company's specific situation. They will judge whether you are eligible based on the records. If there is genuine doubt, you can ask a professional Sharoshi to assess it for you.
Q2: If the employee leaves during the trial period, do I have to return the subsidy already received?
A: This is the question business owners care about most. Generally speaking, if the employee voluntarily leaves during the trial period, or is dismissed by the company for legitimate reasons, the subsidy already paid usually does not need to be returned. But there are exceptions. The specific rules are as follows:
Situations where you do not need to return it:
- The employee leaves voluntarily (unexplained absence, personal reasons, etc.)
- The employee is lawfully dismissed for failing the trial
- The employee cannot continue working due to health reasons or personal circumstances
Situations where you may need to return it or where payment stops:
- The company did not strictly carry out the trial period as per the contract (such as converting the employee to a regular employee early without prompt notification)
- The company is found to have engaged in fraud or improper conduct (such as falsely reporting employee information)
- The company is investigated and penalized for a labor law violation during the payment period
Therefore, even if the employee leaves midway, as long as your company operated in compliance, you can keep the subsidy already received. But if the departure occurs after the subsidy is approved but in a month not yet paid, the subsidy for subsequent months will no longer be disbursed. We recommend that you report to the Public Employment Security Office immediately when the employee leaves, to avoid unnecessary trouble from failing to notify in time.
Q3: My company is a small, individually operated shop. Can I also apply for the Trial Employment Grant?
A: Absolutely. The Trial Employment Grant has no explicit company-size restriction, and an individually operated business establishment (個人事業所) is equally eligible. Whether you run a small eatery, a convenience store, a beauty salon, or another service business, as long as you meet the basic conditions, you can apply.
The advantages of sole proprietorships may even be more pronounced than those of corporate entities:
- The application process is relatively simple, with fewer required documents (no corporate registry needed, etc.)
- You only need to provide a business license or business registration proof
- Wage payment records can use a cash register book or bank transfer records as evidence
However, an individually operated business needs to pay particular attention to the following points:
- You must enroll the employee in employment insurance—this is a prerequisite for applying for the subsidy
- Keep complete wage payment records—preferably by bank transfer rather than cash payment, to facilitate review
- Establish basic trial employment contracts and attendance records—even a small shop cannot handle this carelessly
If your individually operated business has had non-compliant employment practices in the past (such as no contracts or non-transparent wages), we recommend tidying up your systems before applying to ensure you can operate compliantly going forward.
Q4: Can the trial period subsidy and other subsidies (such as the new-graduate hiring subsidy or the disability employment subsidy) be applied for at the same time?
A: This is a rather complex question involving the compatibility between subsidies. In principle, only one subsidy can be applied for per employee in the same period. But the specific situation must be judged based on the employee's specific circumstances.
Situations that may be compatible:
- The Trial Employment Grant and the Specific Job Applicant Employment Development Grant (特定求職者雇用開発助成金, a specified-target employment subsidy) have a certain linkage mechanism. If the employee becomes a regular employee after the trial period, you may be able to apply for the latter, but with a time interval
- Some regional subsidies from local governments may be compatible with the Trial Employment Grant
Situations where you usually cannot apply at the same time:
- The new-graduate hiring grant (新規学卒者等採用支援助成金) and the Trial Employment Grant cannot be applied for concurrently
- The disability employment subsidy also usually has a similar substitutability during the trial period
The safest approach is: Before formally submitting your application to the Public Employment Security Office, consult them about your specific situation—including the employee's background and all subsidy categories you may qualify for. Their staff will help you devise the optimal plan based on the latest policies, ensuring you obtain the maximum subsidy benefit while avoiding the risk of a non-compliant application.
Q5: My subsidy application was rejected. Can I apply again or file an objection?
A: If your application is rejected by the Public Employment Security Office, you can file an objection (異議申立て). This is an important right and should not be given up lightly.
The objection process:
- Understand the reason for rejection: First, obtain a clear reason for the rejection from the Public Employment Security Office. Reasons may include: the employee not meeting the conditions, incomplete company information, a past violation record, etc.
- Gather supplementary evidence: Based on the reason for rejection, prepare materials that can prove you meet the conditions
- Submit a statement of objection: Within a certain period after receiving the rejection notice (usually 30 days), submit a statement of objection (異議申立書) to the Public Employment Security Office, explaining your reasons
- Wait for reconsideration: The Public Employment Security Office or its superior department (such as the Labor Standards Inspection Office) will conduct a reconsideration, usually taking 2–4 weeks
Objections that may succeed:
- A rejection caused by unclear information or a missing document
- The company had a minor past violation, but it has been fully corrected and it has been more than the specified period since then
- A misjudgment of the employee's status, where supplementary materials can prove eligibility
Rejections that are hard to overturn:
- The company did have a major labor law violation in the past 3 years
- The employee's information completely fails to meet the grant conditions
If the objection is also dismissed, you can consider entrusting a Sharoshi to conduct a professional assessment to see whether other viable subsidy options exist—but an objection is usually the last remedy available.
Points to Note When Applying for the Trial Employment Grant
The Golden Rules of Compliant Operation
1. Completeness and authenticity of documents Do not include any false or vague information in your application documents. The Public Employment Security Office reviews application materials, and if it finds fraudulent conduct, it will not only reject the application but you may also face the risk of being held liable. All submitted documents—including the employment contract, payslips, and attendance sheets—must be completely consistent with the actual situation.
2. Timely information updates and reporting During the trial period, any major change concerning the employee (leaving, sick leave exceeding a certain period, transfer, etc.) must be reported to the Public Employment Security Office in a timely manner. Delayed reporting may result in the subsidy payment being suspended or a demand for its return.
3. Proper wage payment The wage during the trial period must not be below the local minimum wage standard and must be paid on time. If there are problems with wage payment, the entire subsidy application may become invalid. It is best to use bank transfers to leave complete payment records.
4. Keep all evidence From application to the end of the subsidy, keep all related documents for at least 3–5 years. This includes the application form, the approval notice, payslips, attendance sheets, and correspondence with the Public Employment Security Office. These documents may be key evidence in a future audit or dispute.
Common Application Mistakes
Mistake 1: Confusing the trial period with a new-employee training period The trial period is a legally binding term clearly stipulated in the employment contract. It is not the same as an internal company training period. The subsidy applies only to a formal trial period, not to training.
Mistake 2: Not obtaining the employee's proof of unemployment Many companies recruit an employee who was previously unemployed but fail to ask the employee for proof of unemployment insurance receipt or proof of unemployment registration. This makes it impossible to prove the employee's unemployed status, and the application is directly rejected.
Mistake 3: Setting the trial period too long The standard trial period is at most 3 months. If your contract with the employee sets a trial period of 6 months or even longer, only the first 3 months meet the subsidy conditions, and it may be deemed a violation of the Labor Standards Act.
Mistake 4: Delayed application Some companies only remember to apply for the subsidy several months after the employee joins. Although you can usually apply retroactively, a delayed application will encounter more scrutiny and may even be rejected for being deemed to fail the time-limit requirement. It is best to prepare the application materials immediately after the employee joins.
Mistake 5: Applying for incompatible subsidies together Not understanding the conflicts between subsidy policies leads to applying for multiple mutually exclusive subsidies at the same time. This can result in being required to return everything or keep only one of them, wasting time and effort.
Summary: Why Chinese Business Owners Should Make Use of This Policy
For Chinese business owners in Japan, the Trial Employment Grant is a severely underrated benefit policy.
Practical benefits:
- Lower recruitment costs: Although the monthly subsidy amount is relatively small (8,500–12,000日元), for small and medium-sized enterprises this is enough to cover a portion of the labor cost during the trial period
- Lower hiring risk: With a government-supported trial period, you can more confidently hire employees who may need time to adjust and observe their actual performance
- Broaden the recruitment pool: This subsidy encourages you to take on the unemployed, the long-term unemployed, people with physical or mental disabilities, and other groups—who often have strong work motivation and loyalty
- Demonstrate corporate social responsibility: In Japan, employing people who face difficulties is seen as a company's social responsibility. This not only earns government support but also enhances the company's image
Special significance for Chinese-owned companies: Many Chinese business owners face challenges such as language barriers and cultural differences when starting a business in Japan. Through this subsidy, you can more flexibly adjust your team composition—including hiring more local employees or other foreign employees who understand Chinese and Chinese-language business—while obtaining economic support from the government. For companies looking to build a more international, more diverse team, this is a rare opportunity.
How to Get Professional Support
If you have questions about the specific application process for the Trial Employment Grant, whether your company is eligible, or need targeted consulting advice, we offer a free initial consultation service. Our team of professional advisors has extensive experience with Japanese subsidy applications, especially for Chinese-owned companies, and can help you:
- Assess whether the company and the recruited employee meet the application conditions
- Help prepare complete application materials
- Guide you through the application process and avoid common mistakes
- Provide professional advice when an application is rejected or a dispute arises
- Plan a long-term human resources and subsidy strategy
We welcome you to get in touch for a one-on-one free consultation. We provide services in both Chinese and Japanese, understand the specific needs of Chinese business owners, and are committed to helping you make the most of the Japanese government's various support policies, creating favorable conditions for your company's sustainable development.