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MHLW to provide subsides to companies rehiring former employees

  • April 5, 2017
  • , Nikkei , p. 18
  • JMH Translation

The Ministry of Health, Labor and Welfare (MHLW) has launched a subsidy program to support companies promoting the rehiring of former employees who left their jobs for such reasons as child-rearing and caring for family members. Small and medium-sized companies that rehire former employees for more than six months will receive yearly subsidies of up to 480,000 yen per person.


A 2015 survey found that 50% of working women quit their jobs when they have children. The MHLW hopes to encourage the rehiring of former employees by providing support to businesses.


The program, which was launched just this month, reaches out to companies that have introduced rehiring systems and kept former employees on the payroll for a long time.


Companies can receive subsidies for rehiring up to five former employees. The amount of the subsidy differs depending on the size of the company. Major corporations will receive 285,000 yen annually for the first former employee it rehires. Then the company will receive an annual subsidy of 190,000 yen for each former employee it rehires after that.


Small and medium-sized companies will receive annual subsidies of 380,000 yen for the first former employee they rehire and 285,000 yen per former employee after that.


The MHLW intends to provide wider support to smaller businesses. Subsidies to growing companies will be increased by about 20% if they meet certain requirements.


As the MHLW hopes the subsidies will lead to long-term employment of workers, the subsidies will be paid to companies in two installments — once when a former employee has worked for more than six months and again when the employee has worked for more than a year.

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