What changes
The Act Partially Amending the Employment Insurance Act and Related Acts (Act No. 26 of 2024, promulgated 17 May 2024) lowers the weekly-hours threshold for employment insurance. From 1 October 2028, only employees with scheduled working hours under 10 a week are excluded; today the line is 20 hours. The other condition, that employment is expected to last at least 31 days, stays.
Because people working fewer hours earn less in each month, the rules for counting insured months are adjusted at the same time. A month will count towards eligibility for the basic allowance if it contains 6 or more paid days or 40 or more paid hours, half the current 11 days or 80 hours.
Newly covered employees receive the same benefits as everyone else: unemployment benefit, childcare leave benefit, caregiver leave benefit and education and training benefits. Both employer and employee pay contributions on all pay at the normal rate, 1.35% in total for ordinary businesses in fiscal 2026.
This is a separate change from the widening of health and pension insurance, which still uses a 20-hour test.
Who it applies to
Every employer with staff working 10 to under 20 hours a week: short-hour part-timers and arubaito, and people combining several small jobs.
Action for employers
- Identify affected staff by mid-2028. List employees with scheduled hours from 10 to under 20 a week; each will need an enrolment notice at Hello Work from 1 October 2028.
- Budget a small cost. At the fiscal 2026 rate the employer pays 0.85% of these employees' pay.
- Check contracts show scheduled hours. Coverage turns on contracted weekly hours, so working conditions notices need to state them clearly.
- Update onboarding and payroll. Make sure your payroll provider can enrol and deduct for short-hour staff from the start date.
Sources
- Act Partially Amending the Employment Insurance Act and Related Acts (Act No. 26 of 2024), provisions in force 1 October 2028.
- Ministry of Health, Labour and Welfare, notice on the 2024 amendments to the Employment Insurance Act (17 May 2024).