On January 18, 2023, the Ministry of Health, Labour and Welfare (MHLW) consulted with the Labor Policy Council (Employment of Persons with Disabilities Subdivision) on its plan for the employment rate of persons with disabilities under the Act to Facilitate the Employment of Persons with Disabilities (PWD Employment Facilitation Act); the MHLW's plan was approved. Accordingly, the new statutory employment rate is to be applied from April 1, 2023.

Article 43, paragraph 2 of the PWD Employment Facilitation Act provides that "The mandatory proportion of disabled workers is to be set based on the percentage of the total number of workers that the total number of qualifying disabled workers accounts for and is prescribed by Cabinet Order at least every five years in consideration of the changes in that percentage." Given that the current employment rate was set in April 2018, a new rate must be in place by FY 2023. Therefore, the MHLW's consultation was a step to update the "Cabinet Order for the Enforcement of the PWD Employment Facilitation Act" (Enforcement Order of the Act), which stipulates the statutory employment rate for persons with disabilities.

Article 38, Paragraph 1 of the PWD Employment Facilitation Act stipulates similar provisions for the national and local governments. Therefore, the employment rate of persons with disabilities will be updated, as shown in the table below.

While the new employment rate will take effect on April 1, 2023, the actual employment rate will be increased in stages beginning in FY2024 to allow companies to prepare for changes in the employment system.

The Enforcement Order of the Act will now be promulgated after a Cabinet decision is made.

The PWD Employment Facilitation Act, included in the "Act to Partially Amend the Act for Comprehensive Support for the Daily Life and Social Life of Persons with Disabilities and other acts," was passed on 16 December 2022 in the Diet. Accordingly, the following measures are to be put in place:

• Implementing vocational guidance at Public Employment Security Offices (commonly known as Hello Work), referring to the assessment results of the Support Program for Employment Choices to be established in welfare services for workers with disabilities. [The enforcement date has not yet been decided, but it will take place within three years after promulgation.]
• The number of persons with severe disabilities and persons with psychosocial disabilities, who work more than 10 hours but less than 20 hours per week, will be added to the calculation of the actual employment rate in order to expand their employment opportunities. [Enforcement date: 1 April 2024].
• Clarifying that the responsibilities of employers include developing and improving the vocational skills of persons with disabilities. [Enacted on 1 April 2025].
• Reviewing the calculation method of the Disability Adjustment Allowance determined by the number of disabled people employed. In addition, strengthening measures to support retention of persons with disabilities in companies. [Enacted on 1 April 2024].

See below for more information:
https://www.mhlw.go.jp/stf/shingi/shingi-rousei_126985.html