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 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 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.
(*This will rise to 2.5% for employment periods after April 1, 2024.)

2. Adjustment Allowance for Employing Persons with Disabilities

Employers with more than 100 regular workers who employ more than the stipulated quota (*1 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 29,000yen (*2) per person.
(*1 This will rise to 2.5% for employment periods after April 1, 2024.)
(*2 For employment periods after April 1, 2024, should the number of people eligible for the allowance exceed more than 120 people per year, the allowance for those exceeding that number shall be 23,000 yen per person per month.)

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.
(* For employment periods after April 1, 2024, should the number of people eligible for the allowance exceed more than 420 people per year, the allowance for those exceeding that number shall be 16,000 yen per person per month.)

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

• The payment system for employment of persons with disabilities, please refer to the relevant manual and explanatory video.(Japanese)

• The electronic tax return application system to prepare and submit tax return and payment applications.(Japanese)

6. Grants

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 workplace facilities, etc., for persons with disabilities
• 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
• Grant for the skills development of persons with disabilities
• Grant for counseling and support for employment of persons with disabilities

• Grants page(Japanese)

  For a video related to grants for the employment of persons with disabilities.(YouTube)　

• Various subsidy information and explanatory videos(Japanese)

  For details on the subsidy system related to employment payments for people with disabilities, please see the various subsidy information and explanatory videos.

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.)