Points to Note Regarding Re-application for the Increase in the Employment Adjustment Subsidy Cap

The second supplementary budget was enacted on June 12, and it was decided to increase the cap for the Employment Adjustment Subsidy to 15,000 yen.

✅ Increase in the Employment Adjustment Subsidy Cap

(1) Regarding the increase in the subsidy cap
Cap: 8,330 yen ⇒ 15,000 yen
For leave and vocational training during the period from April 1, 2020, to September 30, 2020, regardless of company size,the cap has been increased to 15,000 yen.

(2) Regarding the expansion of the subsidy rate for small and medium-sized enterprises that do not conduct layoffs, etc.
The subsidy rate for leave and vocational training for small and medium-sized enterprises that maintain employment without conducting layoffs, etc., was generally 9/10 (or 10/10 if certain requirements are met). It has been decided touniformly increase this subsidy rate to 10/10.

✅ Regarding additional payments

If you have already been receiving the Employment Adjustment Subsidy and the amount was 8,330 yen or more, you will receive an additional payment.
There are cases where procedures are required for additional payments and cases where they are not, which is likely to cause confusion.

(1) If the application for payment has been submitted but the payment decision has not yet been made
・ Procedures for additional payment arenot required
・ Payment will include the difference (additional payment amount)

(2) If the payment decision has already been made
・ Procedures for additional payment arenot required
・ The difference from the amount already paid (additional payment amount) will be paid at a later date ⇒ From July 2020 onwards

(3) If the application for payment has been submitted and past leave allowances have been reviewed (increased) and the additional increased portion of the leave allowance has been paid to employees
・ Procedures for additional payment arerequired
・ By September 30, 2020

✅ Points to note regarding re-application

For (3) above,procedures for additional payment are required. At that time, the following application documents will be required.

・ Re-application form (template)
・ Written oath confirming payment requirements
・ Copy of the payment decision notice
・ Documents showing the amount of increased leave allowance/wages
・ Documents showing the days or overtime hours for which leave was taken (if the number of target employees has increased)

Regarding this "re-application form," the re-application template differs depending on the template of the payment application form used when making theoriginal payment application.

Therefore, it is necessary to confirm what kind of documents were used for the application. If you have requested a labor and social security attorney, they are obligated to keep the application documents for 5 years, so the attorney should also have them on file.

If you have not kept them within your company, you can find out by asking your labor and social security attorney. However, for companies that only submitted the application and did not make copies,might they not be in a state where they do not know which application documents were used?

Leave allowances serve as thebasis for calculating labor insurance premiums.When leave allowances are paid, they become the basis for calculating the employment insurance premiums for that month.
Therefore, ifadditional leave allowances are paid, the additional portion will naturally also become the basis for calculating employment insurance premiums.

If an additional payment is made, since the payroll calculation has already been completed,it will be necessary to deduct (adjust) the employment insurance premiums for the additional leave allowance in the payroll calculation for next month or later.

Companies that are thinking of receiving the additional subsidy by paying additional leave allowances should proceed with the re-application, keeping in mind that the procedures will be complicated.

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