Japan to Raise Ceiling on Employment Adjustment Subsidies
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Tokyo, May 3 (Jiji Press)--The Japanese government will raise the ceiling on employment adjustment subsidies given to companies that put workers on temporary paid leave, economic revitalization minister Yasutoshi Nishimura said in a television program on Sunday.
Prime Minister Shinzo Abe has ordered the ceiling increase amid widespread economic impacts of the coronavirus outbreak, according to Nishimura.
The government will work on lifting the ceiling, currently set at 8,330 yen per person per day, with a view to securing necessary funds through the envisaged second supplementary budget for fiscal 2020.
"The ceiling hike will take effect retroactively," Nishimura said.
While the subsidies are usually covered by employment insurance premiums paid by companies, the idea of using the government's general account has been floated for financing the subsidy program, which is designed to cover costs at companies paying leave allowances to employees, in case the ceiling is raised.
[Copyright The Jiji Press, Ltd.]