Subsidy for Promoting Employment of Workers Aged 65 and Over (Indefinite-Term Conversion for Older Workers Course)

①Overview: The Subsidy for Promoting Employment of Workers Aged 65 and Over — Indefinite-Term Conversion Course is operated by the Ministry of Health, Labour and Welfare and JEED to encourage employers to convert older fixed-term workers into indefinite-term employees. The scheme reimburses employers a per-worker grant after the conversion is implemented under a pre-approved plan. Two procedures are required: a Plan Application before conversion, and a Payment Application after six months of post-conversion wages have been paid. ②Eligibility: Eligible employers are nationwide businesses operating an employment-insurance-applicable establishment that have (a) regulated, in collective labor agreement or work rules, a system to convert fixed-term workers (whose cumulative contract period is within five years) into indefinite-term workers with a clearly specified implementation timing, and (b) appointed a senior-employment promoter and implemented at least one of seven HR measures (training, workplace improvement, health & safety, scope expansion, placement/treatment, wage-system review, flexible working hours). Eligible workers are fixed-term employees aged 50 or older but below the retirement age, with one to five years of continuous employment, who are converted and expected to remain employed until at least age 65. ③Subsidized Content: The subsidy is a per-headcount flat grant, not an expense-reimbursement. JPY 400,000 per converted worker for SMEs and JPY 300,000 per worker for non-SMEs. SME status is determined on the day before the payment application date based on capital and regular employee count by industry (general industry: ≤JPY 300M or ≤300 employees; retail: ≤JPY 50M or ≤50; service: ≤JPY 50M or ≤100; wholesale: ≤JPY 100M or ≤100). ④Rate, Cap, Schedule, Tips: Up to 10 workers per applicable establishment per fiscal year (April–March). Plan applications must be submitted between 6 and 3 months before the conversion start date. Payment applications must be filed within 2 months after the day on which six months of post-conversion wages have been paid. Submissions go to the prefectural JEED branch (Tokyo/Osaka use the dedicated service desk), by post, in person, or via e-Gov electronic application. Applicants should verify before applying that all work rules in force have been filed with the Labour Standards Inspection Office and that no insured employees have been dismissed for the employer's convenience in the relevant lookback window.