The Ministry of Health, Welfare and Labor is finally making some suggestions with regards to the Dependent Spouse Allowance that has long been a part of the compensation system of many Japanese organizations.
Regarding the report of “The findings of the study group on the Spouse Allowance’s towards the active promotion of Women”
- The Spouse Allowance was defined and created when divisions of labor were along gender lines during Japan’s period of high economic growth, such that wives were focused on household chores and raising children, while husbands were focused on paid work. However, the decision made is that in reality we have seen advances in women’s employment such that this allowance, the taxation and social security system are in fact causing limitations on women’s employment opportunities.
- The Spouse Allowance (an allowance depending on the income of the spouse) needs revisions that see it move towards being a more neutral system not linked to the spouse’s working style.However, all Companies should consider changes only when they have considered employment structures and future needs and before implementation ensured sufficient discussion between the company and the employees
PMP has said that this Allowance in no longer relevant, and recommends that this allowance we reduced or abolished, and instead as part of this consideration an allowance to counter the falling birthrate considered. That said, when transitioning the issue of disadvantageous changes need to be considered. Companies considering such changes should not hesitate to contact PMP directly.
※Should you have questions or concerns regarding the above please do not hesitate to contact PMP at info@pmp.co.jp