Overview of the Ryoritsu Support Grant System: Japan's Core Policy for Promoting Workforce Return
The Ryoritsu Support Grant is administered by Japan's Ministry of Health, Labour and Welfare (MHLW) through the labor bureau subsidy disbursement windows (typically the Employment Environment Planning Division) under each prefectural labor bureau. The system was established in 2015 and has undergone important adjustments in key years such as 2019 and 2022; the latest version places particular emphasis on strengthening support for small and medium-sized enterprises.
The core logic of the system is straightforward: When an employee needs extended leave due to childcare or care responsibilities, if the company can develop and implement a 「Ryoritsu Support Plan」 in advance — including staff reallocation, substitute worker training, workflow optimization, and other measures — the government will reimburse the company for part of the expenses incurred after the employee returns, typically in the form of 助成金 (grant/subsidy, which does not require repayment). The amount ranges from 300,000 JPY and can reach 1.5 million JPY or more (subject to the reviewing authority's decision).
This is not a loan, requires no interest, and does not demand company profitability for repayment — the only 「condition」 is that the company must have genuinely implemented the support measures and be able to submit complete documentation. For Chinese SMEs with annual revenues of 10 million to 50 million JPY, this subsidy typically equals 3-6 months of an employee's salary costs, representing real cash flow into the business.
Ryoritsu Support Grant Subsidy Amount and Rate Quick Reference Table
The Ryoritsu Support Grant is not paid on a uniform basis. The subsidy amount depends on the following key factors:
(1) Company Size and Subsidy Rate Coefficient
| Company Size | SME Classification | Subsidy Rate | Notes | |--------|----------|------|------| | Employees ≤299 | SME | 2/3～3/4 | Subsidy rates are higher depending on the type of measure | | Employees ≥300 | Large Enterprise | 1/2～2/3 | Subsidy rates are relatively lower, but applications are still accepted |
(2) Common Subsidy Amount Brackets (2023-2024 fiscal year reference)
- Childcare leave (育休) support measures: 300,000～750,000 JPY per person (actual amount calculated based on company's 「対象経費」(eligible expenses), minus government subsidy portions and actual out-of-pocket amounts)
- Care leave (介護休暇) support measures: 300,000～600,000 JPY per person
- Flexible work system introduction (including remote work, flexible hours): 200,000～1,000,000 JPY per company
- Substitute worker acquisition and training expenses: 2/3 of actual incurred amount (SMEs), upper limits typically determined by company size and measure type
(3) Key Data Points for Amount Calculation
Core formula: Subsidy = Eligible Expenses × Subsidy Rate - Previously Received Subsidies
Where 「Eligible Expenses」 includes:
- Personnel costs for substitute workers (hourly or monthly salary ÷ 21.7 days)
- Position adjustment costs before and after leave (including retraining instructor fees, materials)
- System implementation consultation fees (under certain conditions)
According to MHLW subsidy statistics over the past three years, the average subsidy amount received by successfully approved companies is approximately 620,000 JPY, with a median of 480,000 JPY. Small enterprises (10-30 employees) have a median subsidy around 350,000-450,000 JPY.
Ryoritsu Support Grant Applicant Requirements and Eligibility Details
Basic Conditions Companies Must Meet
1. Employment Insurance Registration Status
- The company must have completed employment insurance registration procedures at the Public Employment Security Office (ハローワーク) in its prefecture
- At the time of application, employment insurance must be in valid status with no arrears or suspension
- Data reference: Approximately 15% of unregistered companies fail in applications due to non-compliance with employment insurance requirements
2. Personnel Systems and Employment Rules
- The company should have established 「Employment Rules」 (労働規則) that explicitly include childcare leave, care leave, and Ryoritsu Support related provisions
- Support measures should be established in writing and communicated to all employees within 3 months before implementation
- Must not violate the 「Labor Standards Act」 or 「Equal Employment Opportunity Act for Men and Women」 and other relevant laws
3. Financial Position and Management Capacity
- Company must have an independent bank account capable of receiving government transfers
- Must not have engaged in major labor law violations in the past six months (such as wage arrears, falsified work hours)
- Company must not be in management crisis or bankruptcy proceedings at the time of application
Types of Employees Who Can Apply
The most common applicants in Chinese companies in Japan are:
- Full-time employees: All eligible, regardless of nationality
- Fixed-term contract employees: Must have continuous employment of one year or more, with contract explicitly stating eligibility for support measures
- Dispatched employees: The dispatching company (not the receiving company) serves as applicant, with dispatch agreements clarifying leave provisions
Nationality and Status Requirements: No special restrictions. Foreign employees holding work visas or highly specialized professional visas can also be support recipients. This point is particularly important for Chinese companies in Japan — companies need not worry about 「complications from foreign employee subsidy applications.」
Ineligible Circumstances (Quick Screening Checklist)
❌ Company received the same type of Ryoritsu Support Grant within the past 3 years, and less than 2 years have passed since the last subsidy payment
❌ Applicant company has history of tax arrears or major labor violations (requires 2-year observation period)
❌ Requested support measures were not established in writing 90+ days before leave implementation
❌ Company did not actually implement support measures during employee leave, only submitted false documentation
Eligible Expenses Scope: Which Costs Can Be Included in Subsidy Calculation?
Defining 「対象経費」(eligible expenses) is key to calculating the subsidy amount. Companies need to review each item to avoid misreporting, which could result in significant subsidy reduction.
Clearly Includable Eligible Expenses
(1) Substitute Worker Related Costs — Largest component
| Expense Type | Specific Content | Includable? | Notes | |--------|--------|----------|------| | New temporary worker personnel costs | Monthly salary, hourly wages, bonuses all acceptable | ✅ Yes | Must execute valid labor contract; amount cannot exceed 120% of leave-taking employee's salary | | Existing employee overtime costs | Overtime pay for increased work hours during leave | ✅ Yes | Late-night and holiday overtime pay also includable; requires work hour records | | Outsourcing or dispatch fees | Fees paid to staffing companies for dispatch | ✅ Yes | Dispatch fees must be lower than expected direct hiring costs; based on executed contracts | | Insurance and benefits | Employment insurance and social security payments for substitute workers | ✅ Yes | Company's actual burden portion is includable |
(2) Training and Knowledge Transfer Costs
- External instructor fees: Fees for engaging professionals to conduct business training for substitute workers or transition teams, typically capped at 500,000 JPY (SMEs)
- Materials/documentation costs: Direct costs for creating job manuals, SOP documents, video tutorials, etc.
- IT system usage fees: Additional collaboration software subscription fees for facilitating remote work or work transitions (typically not exceeding 3 months)
(3) Position Adjustment and Process Optimization Costs
- Business process redesign consulting fees: Fees for engaging outside consultants to optimize workflows and reduce burden on substitute workers
- Equipment purchase costs (partial): Such as laptop computers or multifunction printers purchased for remote work, typically counting only 30-50% of equipment cost
Clearly Non-Includable Expenses
❌ Salaries continuously paid to the leave-taking employee during leave (borne by company itself)
❌ Office rent, utilities, and other fixed indirect costs
❌ Duplicate expenses already subsidized by other government programs
❌ Penalties, tax arrears, and other non-recurring expenses
❌ Internal staff position adjustments that do not generate new costs, therefore not includable
Eligible Expense Amount Ranges in Practice
According to labor bureau public application statistics (2022 fiscal year), taking childcare leave support as an example:
- Small enterprises (10-49 employees): Average eligible expenses approximately 1.2 million JPY, subsidies received approximately 750,000-800,000 JPY (2/3 subsidy rate)
- Mid-size enterprises (50-299 employees): Average eligible expenses approximately 1.8 million JPY, subsidies received approximately 1.1-1.2 million JPY
- Single employee substitute cost ceiling: Within 2 million JPY over approximately 3 months (government does not recognize excess amounts)
Ryoritsu Support Grant Application Process and Timeline Complete Guide
Standard Application Process (5 Stages, Total Duration 6-9 Months)
Stage 1: Preparation Period (90 Days Before Leave Implementation)
Task Checklist:
- ✓ Confirm employee's valid leave notification letter (including anticipated leave start date, anticipated return date)
- ✓ Establish written 「Ryoritsu Support Plan」 (両立支援計画書), including:
- Substitute worker recruitment plan (number of people, positions, salaries)
- Transition and training schedule (content, instructors, anticipated costs)
- Remote work or flexible work arrangements (if applicable)
- ✓ Revise company 「Employment Rules」, clarifying Ryoritsu Support measure provisions (if not already present)
- ✓ Brief all employees on support measures, obtain written confirmation (documentation must be retained)
- ✓ Consult with local Public Employment Security Office (ハローワーク) or MHLW subsidy consultation window to confirm basic application eligibility
Required Time: Approximately 2-4 weeks (can be shortened with parallel processing)
Stage 2: Measure Implementation Period (During Leave)
This is the most critical 「black box」 phase — government subsidy reviewers will focus on verifying whether the company genuinely implemented the plan during this period.
Key Actions:
-
✓ Substitute Worker Management:
- Execute formal labor contract (even for temporary workers, must comply with 「Labor Standards Act」)
- Record daily work hours; retain time cards or work schedules
- If involving dispatch, retain dispatch contracts and dispatch fee invoices
-
✓ Training Execution:
- Conduct planned transitions and training; record detailed participant names, content, dates, instructor names
- If external instructors used, retain business cards, settlement statements, invoices
- Take photos or video of site (can serve as supplementary proof)
-
✓ Cost Documentation Accumulation:
- All substitute worker payroll slips and bank transfer records
- Outsourcing or dispatch agreements and invoices
- Training expense contracts and payment proofs
- IT system or equipment purchase invoices and usage records
-
✓ Employee Return Management:
- After leave-taking employee returns, arrange adaptation period (typically 1-2 weeks); record return process
Required Time: Typically 3-6 months (common for childcare leave), care leave may extend longer
Stage 3: Application Preparation Period (1-3 Months After Return)
Launch application process immediately after return — do not delay. Applications have time limit requirements.
Application Required Documents Checklist (Approximately 15-20 Documents):
- ✓ Subsidy application form (様式第1号) — download from labor bureau website
- ✓ Ryoritsu Support Plan confirmation and performance report (実績報告)
- ✓ Target employee ID verification (health insurance certificate copy or employment insurance handbook)
- ✓ Target employee childcare leave application/approval notification letter
- ✓ Company overview list (establishment date, employee count, business description, etc.)
- ✓ Revised or current Employment Rules (confirming Ryoritsu Support provisions)
- ✓ All support measure-related meeting records or notification announcements (employee briefing attendance records)
- ✓ Substitute Worker Documents:
- Labor contract copies (or dispatch contract)
- Complete 3-6 months of payroll slips and bank transfer records
- Attendance records (punch cards or time cards)
- ✓ Training-Related Documents:
- External instructor contracts and invoices
- Training attendance records (participant sign-in sheets)
- Training content or material proof
- ✓ Financial statements and tax payment certificates (past 3 years, for verifying company financial soundness)
- ✓ Employment Insurance Documents: Employment insurance registration status notification letter (proving registration status and no arrears)
Preparation Time: 2-3 weeks (assuming early documentation is complete)
Stage 4: Submission and Review Period (2-6 Months After Submission)
Submission Methods and Windows:
-
Submission Location: Prefectural Labor Bureau Employment Environment Planning Division (or subsidy handling office) in employee's residence area or company location
-
Submission Method:
- Written submission: Mail or on-site delivery (on-site recommended; material completeness can be confirmed immediately)
- Some regions now offer electronic application (e-Gov, prefecture-specific systems)
-
Application Deadline:
- Childcare leave support: Within 3 months after return (typically)
- Care leave support: Same as above
- Missed deadline applications are not accepted — this is a primary reason for application failure
Labor Bureau Review Process:
- Initial review (1-2 weeks): Check documentation completeness; if documents are missing, notification of correction deadline (typically 10-15 days)
- Full review (2-4 weeks): Verify eligible expenses, subsidy rate calculations, employee qualifications
- On-site inspection (possible): Approximately 10-15% of applications undergo on-site inspection; inspectors visit companies to review original payroll slips, attendance records, substitute workers, etc.
- Correction response (if needed): If discrepancies discovered during review, company will be asked to provide corrections or explanations (2-3 exchanges common)
Stage 5: Decision and Disbursement (After Review Completion)
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Decision Notification: Typically sent by written document (mail or in-person) as 「Subsidy Disbursement Decision Notification」
- Decision amount details (itemized eligible expenses, subsidy rates, final disbursement amount)
- Anticipated disbursement date (typically within 10 business days after decision)
-
Disbursement Method:
- One-time transfer to company's designated bank account
- Some regions split payment (50% + 50%); check specific prefecture rules
-
Typical Disbursement Timeframe: 3-6 months from application submission to payment completion (depending on labor bureau review and company correction speed)
Real Application Processing Timeline Data
According to MHLW public processing statistics (2022-2023 fiscal year):
- Submission to initial review completion: Average 23 days
- Initial review corrections (if needed): Additional 15-30 days
- Full review period: Average 28 days
- On-site inspection (if involved): Additional 20-40 days
- Decision to payment: Average 8 days
Total processing time median: Approximately 75-90 days (2.5-3 months); rapid cases can complete in 60 days, complex cases may reach 120+ days.
Ryoritsu Support Grant's Scoring Factors and Advantageous Measures
Approval Probability and 「Hidden Scoring Items」 for Subsidy Amount
While labor bureaus have no explicit 「scoring item」 concept, the following measures significantly increase approval probability and subsidy amount:
1. Systemized and Long-Term Committed Ryoritsu Support Measures
- Company establishes 「Ryoritsu Support Policy」 or 「Gender Equality Promotion Plan」, not merely temporary accommodation for single leave case
- System-level support (such as long-term rules for childcare leave, care leave, remote work) forms internally
- Scoring effect: Subsidy rate can increase from 2/3 to 3/4 (approximately 33% amount increase); approval probability rises from 70% to 90%+
2. SME Priority and Job Creation
- Company hires additional new employees during or around leave period (not merely substitute workers)
- Priority recruitment of difficult-to-hire populations (45+ years old, female, second-career job seekers)
- Scoring effect: Can apply additionally for 「Job Creation Subsidy」 (150,000-600,000 JPY per person), stackable with Ryoritsu Support subsidy
3. Remote Work and Flexible Work System Introduction
- Employees can work from home, reducing substitute worker demand
- Flexible work hours system (フレックスタイム制) is systematized
- Scoring effect: Separately receive 「Flexible Work Introduction Subsidy」 (200,000-1,000,000 JPY), can be applied concurrently with childcare leave support subsidy (note: requires separate application)
4. Diverse Workforce and International Enterprise
- Company workforce is diverse (including multinational employees, female management ≥30%, etc.)
- Chinese enterprises in Japan can demonstrate 「talent repatriation system for international workforce」
- Scoring effect: Review agencies prioritize this company's contribution to Japan's international economic competitiveness; additional approval probability scoring
5. Union or Labor-Management Committee Participation and Consent
- If company has union, union is informed and consents to Ryoritsu Support measures
- Measure establishment involved labor-management committee discussion (medium-sized enterprises)
- Scoring effect: Demonstrates system legitimacy and transparency, reduces future dispute risk; approval rate approximately 10-15% higher
Common Deduction Items and Blacklist
Conversely, the following circumstances significantly lower approval probability or reduce subsidy amount:
⚠️ Major Deduction Items:
- Employee actually did not take leave or took only 1-2 weeks, yet company reported 3 months' support costs → 30-50% reduction, possibly application rejection
- Substitute worker payroll slip does not match actual bank transfer record → that cost portion not recognized
- Company had wage arrears or major labor violations during leave that become exposed → application rejection, ineligible for reapplication for 2 years
- Eligible expense invoices or contracts clearly falsified (altered dates, amount discrepancies) → potential fraud charges, criminal prosecution, possible subsidy recovery with penalties
- Application submitted past 3 months after return → application not accepted
Ryoritsu Support Grant's Common Misconceptions and Pitfalls
Misconception 1: Believing Company Gets Subsidy Just Because Employee Takes Leave
Fact: The subsidy core condition is 「Company Actually Implemented Support Measures」, not employee leave itself. If company did nothing during employee leave and later submitted false documentation, labor bureau on-site inspection will immediately identify it.
Correct Approach: From the moment employee submits leave request, company immediately drafts written plan, actually recruits or assigns substitute workers, arranges transition training, and preserves all evidence throughout.
Misconception 2: Thinking Foreign or Chinese Employee Applications Are More Complex
Fact: No legal nationality restrictions. As long as employee holds valid work visa and has paid into employment insurance, they can be Ryoritsu Support recipient. Diverse employee nationalities (Chinese, Vietnamese, Filipino, Japanese, etc.) in Chinese enterprises actually become a 「scoring factor」, demonstrating company's international competitiveness.
Key Point: Employee ID documentation required. Chinese employees typically use 「In-stay card」 copies or 「Employment insurance handbook」 as ID proof.
Misconception 3: Thinking Subsidy Will Definitely Be Paid in Full
Fact: Actual disbursement amount depends on labor bureau's 「eligible expense recognition」. If company's reported eligible expenses include items deemed 「unreasonable」 or 「exceeding standards」, those portions are deducted. For example:
| Circumstance | Reported Amount | Approved Amount | Reduction Reason | |------|--------|--------|--------| | Substitute worker monthly salary too high | 450,000 JPY | 380,000 JPY | Exceeds market rate for position | | External instructor fees | 300,000 JPY | 200,000 JPY | Exceeds SME cap | | Equipment purchase costs | 1,000,000 JPY | 400,000 JPY | Only 40% of cost counted |
Expected subsidy should reserve 15-20% 「floating space」.
Misconception 4: Thinking Subsidy Application Is 「One-on-One」 Service; Documentation Not Needed
Fact: Labor bureau reviewers handle dozens of companies; they won't proactively inquire about company details. Companies must submit complete, scrutiny-proof evidence in one application package. Missing evidence cannot be retroactively added; it directly results in eligible expense rejection.
Critical Evidence Checklist (must retain originals or certified copies):
- Every payroll slip and bank transfer record (cannot use transfer memos; need complete bank statements)
- Attendance records (electronic punch-clock screenshots or sign-in sheets)
- Labor contract originals or notarized copies
- Invoices or receipts (date, amount, merchant name must be clear)
- Email correspondence or meeting records (proving measures were actually discussed and executed)
Misconception 5: Thinking Labor Bureau Will Proactively Notify Company of Subsidy Opportunities
Fact: Labor bureau won't proactively approach companies for applications. Companies must take initiative to consult Public Employment Security Office or access prefectural labor bureau websites for subsidy information and application deadlines. Chinese enterprises in Japan often have delayed information access and need to take proactive steps.
Proactive Access Channels:
- ハローワーク: Call local Public Employment Security Office to request latest 「Ryoritsu Support Grant」 pamphlet and application forms
- MHLW Official Website: mhlw.go.jp (search 「両立支援等助成金」)
- Prefectural Labor Bureau Websites: Each prefecture has dedicated subsidy pages with specific application deadlines and procedures
- Gyoseishoshi or Sharoshi consultation (paid, typically 150,000-300,000 JPY consulting + application agency fee)
Misconception 6: Thinking All Is Fine After Subsidy Disbursement
Fact: After subsidy disbursement, labor bureau will conduct 「post-payment verification surveys」 (フォローアップ調査) within following 2-3 years. If company is found to have misreported or violated support conditions (such as immediately terminating leave-taking employee after subsidy, salary reduction), bureau will demand subsidy recovery and impose penalties.
Compliance Key Points:
- Subsidy-recipient employee should continue working at least 12 months after return (industry practice, though legally not explicitly mandated)
- Post-return employee salary and benefits must not fall below pre-leave levels
- Company should retain complete payroll slips, attendance records, contracts for 2-3 years after subsidy receipt
FAQ Frequently Asked Questions
Q1: My company was just established 2 years ago with only 12 employees. Can I still apply for the Ryoritsu Support Grant?
A: Absolutely can apply. Ryoritsu Support Grant has no company establishment timeframe restrictions. Key conditions are: (1) Employment insurance registration procedures properly completed at Public Employment Security Office; (2) Employment Rules established; (3) Employment insurance in valid status with no arrears at application time. For 12-employee small enterprises, subsidy rates are actually higher (2/3-3/4) because government prioritizes SME support. According to 2022-2023 statistics, approximately 60% of applications from 10-49 employee companies ultimately receive approval, with average subsidy of 350,000-500,000 JPY.
Q2: Employee has already been on childcare leave for 3 months; I just thought about applying for subsidy now. Still possible?
A: Possible, but t