Change in Calculation Method for Employment Adjustment Subsidy Amount When Commission Pay Exists

The Ministry of Health, Labour and Welfare has published a leaflet stating that "the calculation method for the Employment Adjustment Subsidy amount when commission pay exists will change for leave taken on or after September 1, 2021." This applies to cases where employees whose salary includes a commission (piecework) system are placed on leave, etc..

For leave where the first day of the determination base period is on or after September 1, 2021, the method for calculating the leave allowance payment rate used for subsidy amount calculation will be changed. Please note that if this applies to you, you will need to submit reference forms, etc., which are scheduled to be published on the Ministry of Health, Labour and Welfare website.

✅ Applicable Employers

〇 This applies if you have placed employees whose salary includes a commission (piecework) system on leave, etc.
※ If this applies to you, you must submit reference forms, etc., which are scheduled to be published on the Ministry of Health, Labour and Welfare website.

✅ Changes

〇 For leave where the first day of the determination base period is on or after September 1, 2021, the leave allowance payment rate used for subsidy amount calculation (item "(5) Payment rate of leave allowance, etc." in the Employment Adjustment Subsidy Amount Calculation Statement) will be changed to the calculation method below.

※1 The amount entered in "(4) Average Wage" of the Employment Adjustment Subsidy Amount Calculation Statement (no change required)
※2 The total number of days of (1) and (2) in "(8) Total Monthly Leave Days, etc." of the Employment Adjustment Subsidy Amount Calculation Statement (no change required)
Note) If you are conducting vocational training for employment adjustment, please perform a separate similar calculation for wages related to vocational training.

〇 In addition, this leave allowance payment rate will be reviewed every six months.
・ This change is intended to ensure that the subsidy amount corresponds to the amount of leave allowance actually paid.
・ Also, since the leave allowance amount may fluctuate from month to month, the leave allowance payment rate will be reviewed every six months to reflect such fluctuations in the subsidy amount as much as possible.

✅ Specific Calculation Methods, Procedures, etc.

〇 For leave where the first day of the determination base period is on or after September 1, 2021, please calculate the rate based on the changes above, referring to the back of the form, and enter it into "(5) Payment rate of leave allowance, etc." in the Employment Adjustment Subsidy Amount Calculation Statement.

〇 When applying for the month following the review month, please attach a copy of the above calculation statement. Also, if a review is conducted after six months have passed, please attach the calculation statement after that review.

✅ Employment Adjustment Subsidy Amount Calculation Statement

【Example of Calculation Method】
When the following employment adjustments are performed
① Leave: Leave allowance amount 7,500 yen (80% for base salary, 0% for commission), 60 man-days of full-day leave, 12 man-days of short-time leave
② Vocational Training: Wage during vocational training 9,375 yen (100% for base salary, 0% for commission), 10 man-days of vocational training

【Other】
〇 If there is a month after this change where the actual leave allowance paid exceeds the subsidy amount, you can recalculate the leave allowance payment rate based on the leave allowance amount for that month. Please submit documents that can verify the actual leave allowance paid when applying.

○ Reference forms that need to be submitted if applicable are scheduled to be published on the Ministry of Health, Labour and Welfare website shortly.

〇 Note that employers with approximately 20 or fewer employees can use the "Small Business Employer Form," which allows for application based on the actual amount of leave allowance paid.