Program Overview: Core Design of the Employment Continuation Support Grant for Workers Over 65
The Employment Continuation Support Grant for Workers Over 65 (hereinafter 「the Grant」) is a specialized subsidy established by the Japanese government to address declining birth rates and an aging society. Its formal name is the 「Employment Continuation Support Grant for Workers Over 65.」 The program originates from amendments to the 「Law Regarding Stabilization of Employment of Older Workers」 (effective in 2013) and aims to encourage companies to extend employees' working careers.
Four Core Objectives of the Program:
- Encourage companies to establish employment continuation systems for workers aged 65 and above
- Enhance workplace participation and compensation for older workers
- Alleviate Japan's labor shortage
- Support companies in institutional innovation and human resource optimization
The Grant is divided into two main categories: Type 1 is 「Establishment of Employment Continuation System for Workers Over 65」 (Introduction Type), which encourages companies establishing high-age employment systems for the first time; Type 2 is 「Improvement of Treatment」 (Treatment Improvement Type), which incentivizes companies with existing systems to enhance compensation and benefits for older workers.
According to the latest public offering guidelines from the Ministry of Health, Labour and Welfare (based on fiscal year 2024), the Grant is administered by prefectural labor bureaus across Japan, operating on a 「first-come, first-served」 basis. In principle, applications are accepted year-round. Subsidy standards may vary slightly depending on company size and regional location; specific details follow guidelines published by each prefectural labor bureau.
Subsidy Amounts and Subsidy Rates: Specific Budget Forecasts
The Grant employs a tiered subsidy system, providing different levels of support based on company size, measures implemented, and achievement of outcomes. Below are common standards:
Introduction Type Subsidy (Establishing High-Age Employment System for the First Time)
Large Enterprises (301 or more regular employees):
- Single subsidy amount: 600,000 JPY (paid over two years: 350,000 JPY in Year 1, 250,000 JPY in Year 2)
- Subsidy target: One-time costs within six months of system establishment (e.g., system design consulting fees, system modifications)
- Employment requirement: At least 1 new employee aged 65 or above
Small and Medium Enterprises (300 or fewer regular employees):
- Single subsidy amount: 850,000 JPY (paid over two years: 500,000 JPY in Year 1, 350,000 JPY in Year 2)
- Subsidy target: Same as above; SMEs receive more favorable subsidy rates
Treatment Improvement Type Subsidy (Enhancing Compensation and Benefits for Existing Older Workers)
Subsidy ceiling: 1.2 million JPY (in principle, disbursed annually over three years, with annual limit of 400,000 JPY)
- Subsidy target: Salary increases, enhanced benefits, vocational training, and other actual expenses for workers aged 65 and above
- Subsidy rate: 50–70% of actual expenses (SMEs typically receive 70%)
- Performance target: Annual salary increase of 3% or more or monthly salary increase of at least 10,000 JPY for relevant employees
Priority Items for Score Enhancement (May Improve Approval Rate)
If companies simultaneously achieve the following conditions, subsidy amounts may be increased:
- Establish positions with identical treatment to same-aged employees: +150,000 JPY
- Implement specialized training programs with completion rates meeting targets: +100,000 JPY
- Female older workers comprise over 30% of employment: +80,000 JPY
Important Notice: The above amounts are based on the most recent official public offering guidelines. Adjustments by individual prefectural labor bureaus may occur. Before applying, verify current amounts with your local labor bureau or the Ministry of Health, Labour and Welfare website.
Application Eligibility and Qualification Requirements: Does Your Company Qualify?
Basic Qualification Conditions
Company Requirements:
- Operate a business establishment in Japan with 2 or more regular employees (including 2)
- Be a covered establishment under the employment insurance system with no outstanding insurance premium payments
- Have received no administrative guidance or penalties for violations of the 「Law Regarding Stabilization of Employment of Older Workers」 in the past three years
- Maintain stable business conditions during the application period with no serious legal violations
Special Notice for Chinese Businesses:
- Japanese branches or subsidiaries of foreign companies qualify
- If the corporate representative holds foreign nationality but is legally registered in Japan, this does not affect application eligibility
- However, business information must align with records from Japan's tax and labor authorities
Specific Requirements for Older Workers
Employees targeted by the Employment Continuation Support Grant for Workers Over 65 must satisfy:
- Age requirement: 65 years or older (based on April 1 of the application fiscal year)
- Employment status: Regular employees, contract employees, or other long-term employment relationships (in principle, contracts with terms of one year or longer, or indefinite-term contracts)
- Continuous employment: Remain continuously employed during the target measure period (Introduction Type requires 6+ months; Treatment Improvement Type requires 12+ months)
Employee types that do not qualify:
- Day laborers or hourly temporary workers (in principle, not counted)
- Part-time employees with fewer than 10 working days per month
- Employees on leave or suspension exceeding three months during the application period
Special Case Judgment
The following companies may face intensified review or rejection risk:
- Companies that have downsized or experienced significant workforce reduction (exceeding 10%) within the past 12 months
- Companies with records of unpaid overtime, non-payment of social insurance, or other labor law violations
- Companies with false or inconsistent information in application materials
Eligible Expenses: What Costs Can Be Reimbursed
Reimbursable Expenses for Introduction Type Subsidy
System Design and Implementation Phase (0–6 months):
- External consulting fees: High-age employment system design consulting, legal review
- System modification costs: Payroll system and attendance management system modifications to align with new system
- Training and education fees: Courses for management and HR staff on system implementation
- Document preparation costs: System manuals, operation guides, posters, and related printing
Specific Examples of Reimbursable Expenses:
- A 30-person manufacturing company operated by Chinese owners engages a professional consultant to develop a 「Employment Continuation Agreement for Workers Over 65」 at a cost of 80,000 JPY; the entire amount can be claimed
- Modification of an attendance system to add a calculation module for older worker severance benefits at a cost of 100,000 JPY falls within the reimbursement scope
Non-Reimbursable Expenses:
- Direct salary payments to new employees (the Grant does not subsidize wages)
- Optimization of existing systems (limited to first-time establishment)
- Company's routine personnel administration costs
Reimbursable Scope for Treatment Improvement Type Subsidy
Salary Increase Category (50–70% reimbursable):
- Monthly salary increases: Actual salary differentials for increases of 3% or greater annually
- Increased severance pay or pensions: Increased amounts from benefit enhancements
- One-time bonuses: Payments under newly established performance-based bonus systems
Specific Calculation Example: A 67-year-old employee with original monthly salary of 250,000 JPY receives a raise to 260,000 JPY (increase of 10,000 JPY). Annual growth rate is 4.8%; annual salary increase is 120,000 JPY. With subsidy rate of 70% (SME), the reimbursable amount for that employee in the corresponding fiscal year is 120,000 JPY × 70% = 84,000 JPY
Non-Salary Benefit Category (50–70% reimbursable):
- Expanded health checkup allowances
- Professional development and continuing education program costs
- Enhanced fringe benefits (e.g., increased commuting allowances, expanded medical insurance coverage)
Reimbursement Ceiling Protection: Even if all conditions are met, the annual subsidy per employee shall not exceed 400,000 JPY, with a three-year cumulative cap of 1.2 million JPY.
Application Process and Timeline: Complete Path from Preparation to Subsidy Receipt
Phase One: Pre-Application Preparation (1–2 Months Before Application)
Step 1: Confirm Application Eligibility
- Access the Ministry of Health, Labour and Welfare website (www.mhlw.go.jp) or your prefectural labor bureau website
- Download the latest fiscal year 「Employment Continuation Support Grant for Workers Over 65 Public Offering Guidelines」 (PDF)
- Verify your company's count of regular employees and employment insurance enrollment status
- Compile records of any labor law violations in the past three years (available free from your local labor standards inspection office)
Step 2: Prepare Basic Documentation
- Company registration certificate (original or certified copy issued within three months)
- Employment insurance coverage document (copy)
- Documents demonstrating company financial condition: audited financial statements and tax returns from the past two fiscal years
- Employment contracts for target older workers (copies)
- Company organizational chart and personnel regulations
Step 3: Develop an Implementation Plan
- For Introduction Type, draft an 「High-Age Employment System Implementation Plan」 (overview, budget, timeline)
- For Treatment Improvement Type, itemize specific improvement measures (salary increases, training content)
- Obtain confirmation and signatures from the company president and HR department
Phase Two: Formal Application (Within Public Offering Period, Generally Year-Round)
Step 4: Submit Application Documents
- Submission channels: Your prefectural labor bureau's Hello Work office or designated application window (can be submitted by mail or in person)
- Application forms: Download prescribed 「Subsidy Payment Application Form」 and related documents from the Ministry of Health, Labour and Welfare website; complete all items
- Required attachments (varies by application type):
- Introduction Type: System implementation plan, system modification estimate, external consulting agreement
- Treatment Improvement Type: Improvement measures list, list of target employees, salary modification notification
- All documents must bear the company seal and be signed by the representative
- Submission deadline: Follow the 「Application Acceptance Period」 specified in the official public offering guidelines; typically 60–90 days after public offering begins
Step 5: Application Receipt and Initial Review
- After the labor bureau receives your application, it typically provides feedback within 10–15 days, indicating whether any formal errors exist
- If materials are missing, you will receive a correction notice (correction period typically 14 days)
- Once initial review is clear, the application advances to the 「Pre-Subsidy Determination Investigation」 stage
Phase Three: Review and Implementation (3–6 Months After Application)
Step 6: On-Site Investigation and Documentary Review
- The labor bureau may conduct on-site investigation to verify:
- Actual employment status and job duties of older workers
- Authenticity and reasonableness of reimbursable expenses (receipts for consulting fees, system modification evidence)
- Whether the company has implemented the improvement measures as reported
- Investigation period: Approximately 4–8 weeks
- Review Focus (Common Rejection Reasons):
- Claimed salary increases cannot be verified through payroll records (major risk)
- Actual working hours or job positions of older workers differ from what was reported
- Company has concealed labor law violations
Step 7: Subsidy Determination
- If the review passes, the labor bureau issues a 「Subsidy Determination Notification」 to the company
- The notification specifies: subsidy amount, payment schedule, and required banking information
- Interval from determination notice to first payment typically 1–2 months
- Important: The final amount is subject to the reviewing authority's decision; various factors during review may result in amount adjustments or denial of subsidy
Step 8: Installment Payments and Ongoing Management
- Introduction Type: Paid over two years (Year 1: 350,000 JPY; Year 2: 250,000 JPY)
- Treatment Improvement Type: Paid annually (annual limit 400,000 JPY; completion within three years)
- Before each payment, the company must submit a 「Subsidy Payment Request Form」 and new evidence of implementation (payroll records, improvement measure documentation, etc.)
- Payment frequency: Typically quarterly or semi-annually
Timeline Reference (Overall Cycle)
| Phase | Duration | Key Milestone | |-------|----------|---------------| | Preparation Phase | 1–2 months | Confirm eligibility, prepare materials | | Application Submission | Within 1 week | Submit application and attachments | | Initial Review | 2–3 weeks | Labor bureau provides receipt or correction notice | | Correction Period (if needed) | 2 weeks | Supply missing materials | | On-Site Investigation | 4–8 weeks | Site visit or documentary review | | Subsidy Determination | 2–4 weeks | Receive Subsidy Determination Notification | | First Payment | 1–2 months | Subsidy deposited to account | | Overall Cycle | Approximately 6–9 months | From application to first subsidy receipt |
Special Note: The above timeline represents average expectations and is not guaranteed. Actual progress depends on the workload of your prefectural labor bureau, completeness of application materials, and complexity of investigation. It is advisable to allow sufficient preparation time before applying.
Common Misconceptions and Score-Enhancement Points: Keys to Successful Application
High-Frequency Misconceptions Analyzed
Misconception 1: Believing a subsidy is automatic simply by employing a worker over 65
- Fact: The subsidy incentivizes 「institutional」 innovation, not merely individual hiring
- Introduction Type requires establishment of a formal 「Employment Continuation System for Workers Over 65」 (must be reflected in regulations, agreements, and handbooks)
- Simply hiring an older worker without institutional safeguards does not meet application criteria
- Correction: Companies must first establish or modify employment contracts, salary regulations, severance regulations, etc., to reflect institutional commitment
Misconception 2: Assuming eligibility continues after a target employee leaves
- Fact: Older workers must remain continuously employed during the 「implementation period」 (typically 6–12 months)
- If an employee leaves or transitions to part-time work mid-period, that employee and related costs cannot be counted toward the subsidy
- Correction: Ensure target employees remain employed through the end of the implementation period. If an employee must leave, notify the labor bureau in advance and modify the application
Misconception 3: Fabricating or misrepresenting salary increases
- Fact: Treatment Improvement Type salary evidence must be rigorously verified through payroll records and social insurance payment documents
- Discovery of misrepresented salary increases will result in subsidy revocation and potential blacklisting
- Real example: A company reported raising an employee's monthly salary from 250,000 JPY to 270,000 JPY, but actual payroll records showed only 260,000 JPY. The application was rejected for misrepresentation
- Correction: Consult professionals before implementing salary changes to ensure modification rationale is sound and data verifiable
Misconception 4: Focusing only on one-time payment receipt while neglecting ongoing management
- Fact: The subsidy is paid annually; new implementation reports and supporting materials must be submitted before each payment
- If in Year 2 the company cannot provide valid evidence (e.g., target employee has left, salary has not genuinely increased), the second payment will be denied
- Correction: Establish proper internal file management, preserving all relevant documents (payroll records, contracts, improvement measure evidence) for at least five years
Misconception 5: Confusing Introduction Type and Treatment Improvement Type subsidy amounts
- Fact: Introduction Type ceiling is 600,000–850,000 JPY; Treatment Improvement Type ceiling is 1.2 million JPY. Incorrect application type selection requires reapplication
- Companies must choose application type at submission time and cannot claim both Introduction and Treatment Improvement types simultaneously
- Correct approach: Apply for Introduction Type in first year → Apply for Treatment Improvement Type in following year after system establishment
Score-Enhancement Strategies: Tactics to Improve Approval Rate
Enhancement Strategy 1: Organizational Structure Formalization
- Establish a dedicated 「High-Age Employment Promotion Committee」 that meets regularly with documented meeting minutes
- Effect: Demonstrates company commitment to the system, increases reviewer confidence. While there is no direct subsidy increase, approval rate improves noticeably
Enhancement Strategy 2: Include Female Older Workers
- If female workers comprise ≥30% of target employees aged 65 and above, receive +80,000 JPY bonus
- Example: A company has 10 target older workers, 3 of whom are female (30%); condition is met, bonus awarded
Enhancement Strategy 3: Establish Training Program
- Develop job skills or digital transformation training courses for older workers
- Training completion rates meeting targets can earn +100,000 JPY bonus
- Illustration: A Chinese manufacturing company creates 「Equipment Operation and Digitalization」 training for 5 employees aged 60+, costing 30,000 JPY, with 100% completion rate, earning the bonus
Enhancement Strategy 4: Upgrade to Same-Age Peer Compensation Level
- Highest-scoring item: If clear rules establish that workers 65+ receive identical salary, bonuses, and benefits to same-position younger colleagues, earn +150,000 JPY bonus
- Difficulty: Requires salary regulation modification and targeted adjustments, but demonstrates genuine company commitment to older workers
Enhancement Strategy 5: Engage Certified Consultant Support
- While there is no direct subsidy bonus, engaging a consultant with 「Sharoshi (Social Insurance and Labor Consultant)」 credentials significantly reduces rejection risk
- Consultant fees (80,000–150,000 JPY) themselves can be claimed as consulting expense, eligible within Introduction Type subsidy scope
Frequently Asked Questions (FAQ)
Q1: My company has only 3 employees. Can I apply for the Employment Continuation Support Grant for Workers Over 65?
A: Yes, you can apply. The basic qualification requirement is having 2 or more regular employees, so a 3-person company meets the threshold. Note that small-scale enterprises often have higher approval odds, as the government particularly encourages support to SMEs. For a 3-person company, if you hire 1 worker aged 65 and establish a system, as an SME you qualify for Introduction Type subsidy of 850,000 JPY. Small business owners are encouraged to fully utilize this policy. When applying, be sure to provide complete social insurance payment records and business verification documentation.
Q2: My company already employs workers over 65 for many years. Can I still apply for the Introduction Type subsidy?
A: No, you cannot. Introduction Type is exclusively for companies establishing a high-age employment system for the first time. If your company already formally employs older workers but lacks explicit system documentation (e.g., no written agreement, no uniform treatment standards), first conduct self-assessment to determine whether a formalized but undocumented system already exists. If truly no system exists, Introduction Type application remains possible but will face stricter labor bureau scrutiny. The more realistic option is to apply for Treatment Improvement Type, which provides subsidy through enhanced compensation and benefits for existing older workers. Treatment Improvement Type offers higher maximum subsidy (1.2 million JPY) and higher approval likelihood.
Q3: Can the subsidy be used to directly pay employee wages?
A: No. This is a common misconception. The Employment Continuation Support Grant for Workers Over 65 is not intended to subsidize routine wage expenses. For Introduction Type, funds are designated for one-time system design and implementation costs; for Treatment Improvement Type, subsidy covers the incremental increase in compensation, not total wages. Taking Treatment Improvement Type as example: when a company raises an employee's salary, the subsidy covers 50–70% of the increase; the company must absorb 30–50%. Additionally, subsidy funds are deposited directly to the company account, so the company must ensure proper fund allocation. In summary, this is not 「free wage subsidy」 but rather 「cost-sharing assistance」.
Q4: If an older worker leaves during the subsidy period, will the subsidy be recovered?
A: In principle, there is risk of recovery. If an employee leaves during the designated 「implementation period」 (typically 6–12 months) or leaves involuntarily, subsidy amounts related to that employee may be subject to deduction. Whether partial or full recovery occurs depends on the reason for departure and timing. For example, if an employee leaves in Month 5 of the implementation period, the company may need to refund 50–100% of that employee's corresponding subsidy. To mitigate risk, before applying, a company should: First, verify that target older workers have stable retention intentions; Second, communicate with employees in advance and seek agreement to remain employed through the implementation period; Third, if an employee must leave, notify the labor bureau early and modify the application. Overall, workforce stability assessment prior to application is critical.
Q5: Will my Chinese company face rejection simply due to nationality issues?
A: No. As long as your company is legally registered in Japan, holds corporate status, and pays employment insurance premiums, regardless of the nationality of company owners or employees, you have equal application rights. The Ministry of Health, Labour and Welfare's subsidy policies do not discriminate based on corporate ownership nationality. However, be mindful of the following: First, all application materials must be in Japanese or accompanied by certified Japanese translation; Second, your company's tax, social insurance, and labor compliance records must be complete and unblemished (this applies to all companies, not specifically targeting Chinese enterprises); Third, if your company engages in practices such as hiring undocumented workers or illegally employing foreign nationals, it will seriously jeopardize your application. Chinese business owners are advised to consult early with a Sharoshi or professional consultant to ensure all documentation is proper and information is truthful, eliminating unnecessary review obstacles.
Q6: For Treatment Improvement Type subsidy, by how much must salary increase to gain approval?
A: Treatment Improvement Type has two performance targets; a company must achieve one: Target 1—Target employees' annual salary grows by ≥3%; Target 2—Monthly salary increases by ≥10,000 JPY. For an employee with monthly salary of 250,000 JPY, a monthly increase to 260,000 JPY (increase of 10,000 JPY) achieves 4.8% annual growth, satisfying both conditions. Subsidy rate is 50–70% (SMEs typically 70%); annual subsidy for this employee is (260,000 - 250,000) JPY × 12 months × 70% = 84,000 JPY. It is essential to emphasize that salary increases must be verified through formal payroll records, social insurance payment documents, tax filings, and similar official records. Verbal agreements or informal records are insufficient. The labor bureau's investigation rigorously cross-checks claimed salaries against actual disbursements. Any discrepancy results in that employee's subsidy denial or reduction.
Special Recommendations for Chinese Business Owners
Japan's aging demographic trends are accelerating, and the subsidy scale and encouragement of the Employment Continuation Support Grant for Workers Over 65 increase year by year. For Chinese business owners in Japan, this policy serves both as cost relief for addressing labor shortages and as an opportunity to demonstrate corporate social responsibility and optimize human resource structure.
Inherent Advantages for Chinese Businesses in Japan:
- Often employ a higher proportion of older workers (reflecting demographic characteristics of the Chinese community), providing a natural foundation for application
- Predominantly SMEs, qualifying for more favorable subsidy rates and amounts
- If the business operates in labor-scarce sectors such as manufacturing, dining, or nursing care, approval probability is higher
Recommended Action Steps:
- Immediate Self-Assessment: Count existing employees 65 and above, review job duties and compensation, compare against whether a formal 「Employment Continuation System」 exists
- Select Appropriate Type: If no system exists, apply for Introduction Type; if a system exists but treatment can be enhanced, apply for Treatment Improvement Type
- Engage Professional Support: Consult with a Sharoshi or human resources consultant with extensive subsidy application experience. Though there is a fee (50,000–150,000 JPY), it significantly improves approval rate and subsidy amount
- Regularize Internal Management: Organize employment contracts, payroll records, social insurance documentation, and other files to ensure data consistency and truthfulness
- Plan Ahead: If you intend to apply, begin the process 2–3 months in advance, allowing time for potential material corrections and on-site investigations
Summary: Seize Policy Benefits to Support Sustainable Company Development
The Employment Continuation Support Grant for Workers Over 65 is an important policy instrument through which the Japanese government addresses demographic crisis and encourages companies to assume social responsibility. Whether establishing a new high-age employment system or enhancing treatment of existing older workers, this subsidy reduces cost burden for companies operating in Japan—particularly SMEs, which may receive support up to 1.2 million JPY.
For Chinese business owners in Japan, the key insight is recognizing that this subsidy is not merely an 「opportunity to receive funds」 but rather a comprehensive opportunity for institutional normalization, human resource optimization, and enhanced social contribution. Through formal application, proper management, and continuous improvement, companies gain economic subsidy while establishing more inclusive and sustainable employment systems—critical to long-term competitive advantage.
Final Compliance Reminder: The success or failure of subsidy application is ultimately subject to the reviewing authority's decision at the Ministry of Health, Labour and Welfare and prefectural labor bureaus.