Japan to increase EI premiums


Politics

Tokyo, Dec. 5 (Jiji Press) – The Japanese government plans to increase EI premiums in fiscal 2022, which begins in April, and is holding discussions to decide the scale of the increase, we learned on Sunday.

EI system lacks financial resources after increased employment adjustment subsidy payments to companies to partially cover holiday pay they pay to workers on leave amid new crisis coronaviruses.

The government therefore decided to demand higher premiums from both employers and employees. It will speed up discussions during work to compile the 2022 fiscal budget towards the end of the year.

The employment insurance program is financed in large part by contributions paid by employers and employees as well as by contributions from the general account of the government.

The contribution rate for the current financial year is set at 0.3% of the overall salary for employees and 0.6% for employers. The rates were reduced from the initial levels of 0.6% for employees and 0.95% for employers, as the system had more than sufficient reserve funds.

[Copyright The Jiji Press, Ltd.]

Jiji Press


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