When does the new employment insurance premium take effect?

The new rate of 1.35% applies from April 1 payrolls. Employers should ensure systems switch in time for April salary calculations. Workers will see the lower deduction on April payslips. The change runs through FY2026 unless the MHLW issues further updates later in the year.

How much will employers and workers save each month?

Savings are about ¥100 per month for every ¥100,000 of insured wages, split roughly equally. At ¥300,000 wages, that is about ¥150 less per month for the employer and ¥150 more in worker take-home pay. Annual savings scale with wage levels and headcount.

Which part of the premium changed?

Only the unemployment benefits portion changed. It now stands at 0.6% and is shared by employers and workers. Other components remain the same. This is why the burden reduction is split between employers and employees, while the employer-only parts of the premium are unchanged.

What should HR and payroll teams do now?

Update payroll software to the 1.35% total rate starting April 1, revise FY2026 budgets, and communicate new deductions on payslips. Recheck employment contracts or quotations tied to labor cost rates. Keep documentation for audits and monitor new MHLW notices in case contribution rates are adjusted again.

Law and Government

Japan Cuts Employment Insurance Premium Again — February 27 Update

ByDanny Kontos February 27, 2026February 27, 2026

Japan employment insurance p is back in focus as the MHLW confirms a premium cut to 1.35% from 1.45% effective April 1. This is the second straight reduction, reflecting higher reserves. The unemployment benefits portion falls to 0.6%, split by employers and workers, while other components stay the same. We explain the change, quantify savings for FY2026 payroll costs, and outline effects on unemployment benefits Japan. Expect a small boost to margins and disposable income amid a tight job market.