The Senior Employment Continuation Benefit is a program designed to support and encourage the continued employment of older workers up to the age of 65, while maintaining and stimulating their desire to work. This benefit is provided to employees aged 60 to 64 who continue working with a wage reduction of less than 75% compared to their wage at the time of reaching 60, and who are covered by the general employment insurance system.
Regarding this program, the revised Employment Insurance Law stipulates that starting in April 2025, the maximum payment rate will be reduced from 15% to 10%. The Ministry of Health, Labour and Welfare has released a leaflet summarizing the changes, clarifying the details.
The target group includes individuals who will turn 60 on or after April 1, 2025 (those who have not yet met the 5-year insurance coverage requirement at that time will become eligible once they meet the 5-year condition). However, individuals who turn 60 before March 31, 2025 (and meet the 5-year coverage requirement at that time) will not be affected by the change in the payment rate before March 31, 2025.
It is especially important to explain the upcoming changes to employees who will reach 60 years of age on or after April 1, 2025.
