Japan raises ratio of employees with disabilities to 2.5% in private sector

The Japanese government has raised the legally required ratio of employees with disabilities in the private sector to 2.5 percent or higher starting on April 1.

The labor and welfare ministry says the number of people with disabilities working at private firms has been on an upward trend. It estimates the figure to be more than 1.1 million as of June 2023.

However, only 50.1 percent of companies with 43.5 employees or more reportedly achieved the required 2.3 percent ratio of people with disabilities among their workforces.

The new legally required quota of 2.5 percent or higher is applied to businesses with 40 employees or more.

The ratio is set to be raised again in July 2026 to at least 2.7 percent.

The labor ministry is granting subsidies to companies that employ people with disabilities. It is also advising private sector organizations who make no visible improvement in hiring practices and fail to achieve the ratio that their names will be made public.