Business Improvement Subsidy (FY2026, Reiwa 8): supporting minimum wage increases of JPY 50 or more together with equipment investmentThe government backs companies that raise the lowest hourly pay and bring in machines
This scheme subsidizes part of the costs for small and medium-sized enterprises and small businesses that raise their in-workplace minimum wage by JPY 50 or more and invest in equipment and the like that improves productivity. In FY2026 (Reiwa 8) the maximum is JPY 6,000,000, and the subsidy rate is 4/5 if the in-workplace minimum wage is below JPY 1,050 and 3/4 if it is JPY 1,050 or more.
- In-workplace minimum wage
- JPY 1,040 (subsidy rate 4/5)
- Raising 8 workers to JPY 1,130 (JPY 90 course)
- Cap JPY 4,500,000
- Equipment investment
- JPY 6,000,000
- Investment x subsidy rate (JPY 6,000,000 x 4/5)
- JPY 4,800,000
- Amount paid (the lower one)
- JPY 4,500,000
Key points
- The courses are JPY 50, JPY 70 and JPY 90. The subsidy cap depends on the size of the increase and the number of workers raised. For the JPY 90 course the cap is JPY 4,500,000 for 8 or more workers, and JPY 6,000,000 for 10 or more workers (special-case businesses only).
- The subsidy amount is the lower of (equipment investment costs x subsidy rate) and the subsidy cap.
- Eligible applicants are small and medium-sized enterprises and small businesses whose in-workplace minimum wage is below the FY2026 regional minimum wage. Applications are made per workplace.
- Changes for FY2026: motor vehicles that had been a special case (excluding special-purpose vehicles) are excluded, and the workers whose wages are raised must be employment insurance enrollees.
- Applications open on September 1, 2026. Introducing the target equipment before the grant decision makes it ineligible.
What to do in practice
- Check your in-workplace minimum wage and the effective date of the regional minimum wage for your workplace.
- Place orders for and introduce equipment only after receiving the grant decision.
This is a program where, if a shop or factory raises the lowest hourly pay by JPY 50 or more and buys machines and the like that make work faster and easier, the government pays part of the cost. The amount you receive changes depending on how much you raise the hourly pay.
- 1. PlanMake a plan to raise hourly pay and a plan to buy machines
- 2. ApplyApply to your local Labour Bureau
- 3. ApprovalThe government tells you it is OK (grant decision)
- 4. Carry outRaise the hourly pay, buy the machines and pay for them
- 5. ReportReport the results, and the money is transferred to you
Points
- You need both a promise to raise hourly pay and a plan to buy machines.
- 4/5 or 3/4 of the money you spent comes back, but there is a limit on what you can get.
- If you buy the machine before the government says OK, you will not get the money.
What the words mean
- In-workplace minimum wage (事業場内最低賃金)
- The lowest hourly pay at that workplace
- Subsidy (助成金)
- Money from the government you can get if you meet the conditions, and do not have to pay back
- Ministry of Health, Labour and Welfare (MHLW): MHLW: Guide to the Business Improvement Subsidy for FY2026 (Reiwa 8) (leaflet)
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.