Japan to provide subsidies to companies and employees affected by Noto quake

Japan's labor ministry says it will implement a special measure in order to provide subsidies to businesses and employees affected by the January 1 earthquake.

Subsidies for employees

Employees of companies in Ishikawa, Fukui, Toyama and Niigata Prefectures who have been unable to work due to quake-related suspensions of business are eligible for subsidies.

Unemployment benefits are usually only paid to employees who have left their jobs. But the government has designated the Noto Peninsula Earthquake a "disaster of extreme severity," which means the ministry can implement a special measure that expands eligibility. Workers can now be deemed unemployed even if they have not left their jobs.

Applications for the subsidy will be accepted at Hello Work employment service centers starting on January 12. Those eligible should apply at their local Hello Work station, but if that location is inaccessible due to the earthquake they can apply at other areas.

People with questions about the application process can consult with their local labor bureau.

Subsidies for businesses

Companies forced to downsize operations due to the earthquake are eligible for employment adjustment subsidies. The ministry has announced it will raise the subsidy rate to a maximum of 80 percent of the absence allowance that companies pay to their employees.

The system typically subsidizes a portion of the absence allowance for companies that downsize operations for economic reasons while maintaining their usual employment level.

This time, the ministry is implementing a special measure to subsidize companies affected by the earthquake, regardless of location. Companies are eligible as long as their sales have decreased by 10 percent or more in their most recent month of business.

The subsidy rate will be highest for companies in the affected prefectures. For small- and medium-sized firms, the rate will be increased from the usual 66 percent to 80 percent. For large companies, the rate will be increased from the usual 50 percent to 70 percent.

The ministry is also increasing the number of days the subsidies will be in place, from the usual 100 to 300 days per year. Companies can apply at local labor bureaus or Hello Work stations.

This information is current as of January 12, 2024.