Levy and Grant System for Employing Persons with Disabilities

The employment of persons with disabilities (persons with physical, intellectual and/or mental disabilities)in many cases requires employers to take special steps, such as workplace facility and equipment modifications, workplace environment changes, and adoption of special personnel management programs.Since these measures involve a financial outlay, an economic imbalance arises between employers who fulfill their social responsibility to employ disabled workers and those who do not.
The Levy and Grant System for Employing Persons with Disabilities is based on the principle of collective social responsibility, which claims that the responsibility for employing persons with disabilities must be borne equally by all the employers. Based on the Law for Employment Promotion of Persons with Disabilities, this system has been set up to balance the financial burdens that accompany employment of persons with disabilities among the employers, as well as to provide support and advice to employers in order to promote and secure employment of persons with disabilities.

1 Reporting and Payment of Levies for Employing Persons with Disabilities

Employers with more than 100 regular workers are required to file a levy form. Among employers, those who fail to meet the legally required employment quota, which is the equivalent of *2.3% of the employer’s total workforce,must pay a levy for each person below the quota. The levy
per month is 50,000 yen per person below the quota.

* Pursuant to the revision of the Law for Employment Promotion of Persons with Disabilities, the quota was raised from 2.2% to 2.3% on March 1, 2021.

2 Adjustment Allowance for Employing Persons with Disabilities

Employers with more than 100 regular workers who employ more than the stipulated quota (*2.3%) of persons with disabilities can apply for an Adjustment Allowance for Employing Persons with Disabilities for the number of disabled workers exceeding the legally mandated employment rate. The adjustment allowance per month is 27,000yen per person.
* Pursuant to the revision of the Law for Employment Promotion of Persons with Disabilities, the quota was raised from 2.2% to 2.3% on March 1, 2021.

3 Rewards

Employers with 100 regular workers or less whose total number of persons with disabilities regularly employed exceeds a fixed number (equivalent to the accumulative number in that fiscal year of 4% of all regular workers per month or 72 persons, whichever is greater) may receive a Reward (21,000yen per month per person) for the number of disabled workers in excess of the fixed number.

4 Special Adjustment Allowance for Supporting Persons with Disabilities Working at Home

Employers with more than 100 regular workers that place orders with persons with disabilities working at home or organizations supporting home-based work are eligible to apply for a “special adjustment allowance for supporting
persons with disabilities working at home”. Based on the application of eligible employers, the special adjustment allowance will be paid as a “special reward for supporting persons with disabilities working at home”.

5 Special Benefits

• electronic tax return application system site(Japanese)

  Please use the electronic tax return application system to prepare and submit tax return and payment
  applications.

6 Special Benefits

Grants are available to partially cover the costs incurred by employers in their attempts to hire or continue to employ persons with disabilities. Such costs may include the improvement of facilities and equipment, special measures to ensure appropriate employment management, etc.

• Grant for the provision of welfare facilities, etc., for persons with disabilities
• Grant for workplace attendants for persons with disabilities
• Grant for providing job coaches for persons with disabilities
• Grant for commuting measures for persons with severe disabilities
• Grant for the provision of facilities, etc., in enterprises employing a large number of persons with severe disabilities

Employer Surveys

To ensure that the Levy and Grant System is functioning properly, surveys are conducted on employers required to pay levies and employers
who qualify for adjustment allowances and grants.

Application for adjustment allowances, rewards,and grants, as well as declaration of levies, should be submitted to the Elderly and Persons with Disabilities Services Department of the respective JEED prefectural offices. (Business Handling Department in Tokyo and Osaka prefecturalOffices.)