TOKYO — Japan is working on a subsidy that would ensure furloughed employees at small companies — those in the service sector with up to five workers and manufacturers with up to 20 — receive nearly their full wages during the current state of emergency, according to a health ministry plan.
Many companies across the country are being asked to close in an effort to keep people at home and cut off the coronavirus’s infection routes. This is placing a large financial burden on those who work at such companies, many of whom are receiving 60% of last year’s salaries, which is often not enough to allow them to get by. The 60% figure is the minimum companies are legally required to pay in such circumstances.
The health ministry’s plan is to cover the full amount that companies spend on these allowances as long as the companies are paying 100% of last year’s wage levels.
The Tokyo Municipal government and other local authorities across Japan have requested restaurants and other businesses to close or shorten their business hours during the health crisis. The national government’s financial support is aimed at maintaining income levels.
The subsidy program’s parameters will cover 3 million companies and about 10 million employees.