Japan Diet OKs Employment Insurance Premium Rate Hikes

Politics

Tokyo, March 30 (Jiji Press)--The Diet, or Japan's parliament, on Wednesday enacted bills aimed at raising in fiscal 2022 employment insurance premiums paid by workers and employers.

The bills to revise the employment insurance law and other relevant legislation were approved at the day's plenary meeting of the House of Councillors, the upper chamber of the Diet.

The premium hikes are intended to cover a surge in employment adjustment subsidy payments to companies that provide leave allowances to furloughed workers amid the novel coronavirus pandemic.

The premium rate for workers will be hiked in October to 0.5 pct from 0.3 pct at present, and that for employers will be raised to 0.85 pct from 0.6 pct. The increase for employers will be carried out in two stages, in April and October.

For example, a worker with a monthly salary of 300,000 yen will have to pay 600 yen more in employment insurance premiums per month.

[Copyright The Jiji Press, Ltd.]

Jiji Press