Hiring someone aged 60 or over does not automatically entitle an employer to a subsidy. Recruiting an eligible jobseeker, changing a company's retirement rules and an employee experiencing a wage reduction after age 60 involve different programs. The continued-employment benefit for older workers (高年齢雇用継続給付) is an employment-insurance benefit for qualifying workers, not a recruitment subsidy paid to their employer.
This article was checked against Ministry of Health, Labour and Welfare (MHLW) and JEED sources on September 14, 2026. Individual applications depend on the rules applicable to the referral, hiring or implementation date. The Chinese original was published on September 10; this English version was prepared on September 14.
Match the program to the planned action
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| Planned action | Program to check | Recipient and contact |
|---|---|---|
| Hire an eligible jobseeker aged 60 or over through a qualifying referral | 特定求職者雇用開発助成金（特定就職困難者コース） | Employer; labor bureau or Hello Work |
| Raise or abolish the retirement age, or extend continued-employment arrangements | 65歳超雇用推進助成金（65歳超継続雇用促進コース） | Employer; JEED prefectural branch |
| An eligible worker aged 60 to under 65 continues working after a wage reduction | 高年齢雇用継続給付 | Worker; Hello Work, with procedures normally handled through the employer |
These programs support recruitment, employment-system changes and workers' income respectively. Their documents and deadlines are not interchangeable. See the official recruitment subsidy, retirement-rule subsidy and continued-employment benefit explanations.
Recruitment: check referrals and individual support, as well as age
The 特定就職困難者コース requires a qualifying referral from Hello Work or an eligible employment placement provider, alongside employment-insurance and continued-employment conditions. Direct recruitment through a job advertisement, or arranging a nominal referral after deciding to hire, does not satisfy the referral requirement. Official employer Q&A, questions 3, 5 and 6
For referrals from May 1, 2026, the older-worker category additionally requires the person to be receiving individual employment support from Hello Work or another qualifying provider on the referral date. Being 60 or older is insufficient by itself. This category can include people aged 65 or over, subject to all other conditions. Official overview, page 1, March 5, 2026 edition
The official schedule lists ¥600,000 for a qualifying older worker employed by an SME outside the short-hours category, or ¥400,000 for a qualifying short-hours worker, over one year in two periods. Short-hours means scheduled weekly hours of at least 20 and under 30. Each period's payment is subject to limits including wages actually paid. These are program amounts, not a promise of payment for a particular hire. Official amounts and conditions
Before making the hiring decision, ask the referral office to confirm the candidate's subsidy status, referral date, individual-support status, contract type and intended continuity of employment. Do not rely on reconstructing a qualifying referral after work begins.
Retirement rules: the company's system matters
JEED's 65歳超継続雇用促進コース supports qualifying changes such as raising the retirement age to at least 65, abolishing it, or introducing continued employment to at least 66 and beyond the previous applicable age. Simply hiring one 66-year-old employee does not establish the required company-wide change.
The normal application window covers four months starting in the month after implementation, with acceptance from the start of each month through the 15th. If the 15th is an administrative holiday, the deadline moves to the next opening day. Mailed documents must arrive within the period. Acceptance may stop due to budget limits. Amounts and eligibility depend on the previous rules, the change and qualifying insured-worker numbers. JEED application guidance
Before changing work rules, consult the FY2026 application guide. Keep the old and new rules, implementation date, filings and employee records. Separate employment-management and indefinite-contract conversion courses have their own planning procedures; this timetable cannot be used for them.
Wage reductions: the continued-employment benefit belongs to the worker
The benefit concerns qualifying generally insured workers aged 60 to under 65 whose wages have fallen below 75% of the relevant age-60 or other qualifying baseline. Insurance history and each month's pay matter to both eligibility and calculation. MHLW benefit Q&A
For people reaching the qualifying age-60 or equivalent reference date from April 1, 2025, the maximum rate changed from 15% to 10%. If the person had not yet accumulated five years of insured coverage, the date that coverage reaches five years also matters. A maximum of 10% does not mean a fixed 10% payment for every worker, or reimbursement to the employer. Official change notice
Even when the employer handles paperwork, keep the worker's benefit separate from employer subsidies. Do not directly deduct an employee's expected personal benefit from the company's recruitment budget.
Timing for the recruitment course
For the 特定就職困難者コース, the sequence is:
- Before referral and hiring: confirm status, applicable rules, contract form and continued-employment conditions with the qualifying provider.
- After hiring: maintain accurate contracts, payroll ledgers, attendance and eligibility records.
- After each covered period: periods are generally six months. Submit the payment application within two months of the day after the period ends. Payroll closing dates affect the start date, so use the official timeline.
- Following examination: the labor bureau determines payment or non-payment. A uniform review duration or payment date cannot be promised.
This timetable is specific to the recruitment course, not a common deadline for every older-worker program. Official process and documents, page 2
Common misunderstandings
Is probation always excluded until formal confirmation?
No. The official Q&A says having probation does not by itself immediately exclude eligibility. However, continued probation at the first-period application, or separate contracts for probation and subsequent employment, can make the hire ineligible. Check both the contract and application stage. Official Q&A, question 1
Must all previous payments be repaid if the employee resigns?
Resignation alone is insufficient for a blanket conclusion. Check the program, applicable edition, reason for leaving and payment period to determine subsequent payments or repayment. Report the facts to the responsible office and retain the records.
Does meeting several basic conditions establish eligibility?
No. Check age, referral, continued employment, insurance and common employer conditions separately. Combining programs also requires reviewing both programs' payment-coordination rules. Different expense descriptions do not automatically make simultaneous support permissible.
Preparing for a consultation
Prepare the workplace location, business size, proposed employee's age and referral date, scheduled weekly hours, contract type and proposed start date. For retirement changes, also prepare the current work rules and implementation plan. A summary is enough initially; do not send personal identification numbers or complete identity documents in the first message.
For help organizing these differences, request an initial consultation. If the actual objective is regular-employment conversion or training, review the Career Advancement Subsidy or Human Resources Development Support Subsidy, then verify the conditions with the relevant office or a licensed labor and social security attorney.
Correction record — September 14, 2026: separated employer subsidies from worker benefits; removed unverified program names and blanket claims about a three-month hiring deadline, two-to-four-week review, universal probation exclusion and automatic repayment after resignation. Added the 2026 referral condition, official sources and program-specific timing.