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Statutory Rate to Employ Disabled Employees Has Been Raised to 2.2%

New Legislation Enacted

Author: Aki Tanaka, Attorney at Law – Littler Mendelson, P.C.

As per the revision of the Act to Promote the Employment of Disabled Employees in 2013, the statutory rate to employ disabled employees has been raised from 2.0% to 2.2%, which became effective as of April 1, 2018. Employers with 45.5 employees (some part-time employees are counted as 0.5) and more are subject to this regulation. The rate of 2.2% is anticipated to be raised to 2.3% within 3 years from April 1, 2018. Employers are required to pay the amount to the government if they do not achieve the statutory rate. The amount of such payment is calculated by 40,000 Yen/month times the number of the disabled employees they failed to hire if the employer has 100 through 200 employees in total. The amount becomes 50,000 Yen/month for the employers with more than 200 employees.