Japan to Raise Employment Insurance Premiums

Politics

Tokyo, Dec. 5 (Jiji Press)--The Japanese government plans to raise employment insurance premiums in fiscal 2022, which starts in April, and is holding discussions to decide the size of increase, it was learned Sunday.

The employment insurance system is running low on its financial resources after a surge in employment adjustment subsidy payments to companies to partially cover leave allowances they pay to furloughed workers amid the novel coronavirus crisis.

The government, therefore, decided to ask for greater premium payments from both employers and employees. It will accelerate talks during work to compile the fiscal 2022 budget toward the year-end.

The employment insurance system is mostly financed by premiums paid by employers and employees as well as contributions from the government's general account.

The premium rate for the current fiscal year is set at 0.3 of overall wages for employees and 0.6 pct for employers. The rates were reduced from the original levels of 0.6 pct for employees and 0.95 pct for employers, as the system had more than enough reserve funds.

[Copyright The Jiji Press, Ltd.]

Jiji Press