Complete Guide to the 2026 Human Resource Development Subsidy: Reskilling Support Course (March 2026 Revision)

What Is This Subsidy For?

The Human Resource Development Subsidy (Reskilling Support Course under Business Expansion) is a government-managed employment insurance program administered by Japan's Ministry of Health, Labour and Welfare (MHLW Human Resource Development Subsidy).

When an employer covered by Employment Insurance provides Off-the-Job Training (Off-JT) to help employees acquire knowledge and skills needed in new fields, the program covers a portion of both the training costs and wages paid during training.

For companies investing in workforce transformation for DX, GX, or new business development—where employees need to cross into domains beyond their existing roles—this subsidy can substantially reduce the financial burden.

Who Is Eligible to Apply?

Employers must meet the following conditions:

• The workplace is covered under Employment Insurance
• There are no outstanding Employment Insurance premium arrears
• The employer has no history of fraudulent benefit claims
• Participating employees are Employment Insurance insured persons

Self-employed individuals operating as insured workplaces may apply for training provided to their employees (not for the owner's own skill development).

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The program was substantially expanded on March 2, 2026 (SR Office Riche "Major Expansion, February 2026"). Here are the three key changes.

Change 1: HR Development Plan-Based Training Is Now Eligible

Before the revision, only training tied to specific business expansion plans (DX transformation, GX initiatives, new business launches, etc.) was eligible.

After the revision, training based on a company's HR strategy or talent development plan—aimed at skills for roles employees are expected to take on in the future—is also covered, even without a confirmed business expansion plan (Reskilling Navi "Comprehensive 2025 Guide").

What this means in practice: Previously, a company needed a concrete plan like "We're launching a data analytics service, so we need Python training." After the revision, a company can apply saying "We plan to have this employee handle data analysis work in the future—let's send them to Python training now." Pre-emptive training before reassignment is finalized is now permitted.

Note that as an eligibility condition for HR development plan-based training, the HR placement plan must cover an approximately 3-year horizon. A long-term plan looking 10 years ahead alone does not satisfy the application requirements.

Change 2: Split Payment Applications Are Now Allowed

Before the revision, employers could only apply after training was fully completed. After the revision, interim payment applications during long-term training are now possible (SR Office Riche).

This reduces the cash flow burden on companies that previously had to front all training costs before receiving reimbursement. For details on application timing and frequency limits for split payments, refer to the MHLW application forms page (from March 2026).

Change 3: Equipment Investment Subsidy Added (SMEs Only)

A new provision was added allowing SMEs to claim an additional subsidy for equipment or machinery purchased after training to apply the newly acquired skills for productivity improvement (SR Office Riche).

For specific subsidy rates, caps, and eligible equipment requirements, refer to the official MHLW pamphlet (March 2, 2026 edition).

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Cost Subsidy Rate and Wage Subsidy

Wage subsidy amounts apply to training plan submissions on or after April 1, 2025 (previously ¥980/hour for SMEs, ¥480/hour for large enterprises). (Hojyokin Portal)

Maximum Reimbursable Cost per Person per Training Program

(Customedia)

Other Limits

• Wage subsidy hour cap: 1,200 hours per person per training program (1,600 hours for specialized practical vocational training) (Hojyokin Portal)
• Annual cap per workplace: ¥100 million (Shikin Yayoi)

Sample Calculation

Example: An SME sends one employee to a 200-hour Python and data analysis program (training cost: ¥400,000, conducted during scheduled work hours):

• Cost subsidy: ¥400,000 × 75% = ¥300,000
• Wage subsidy: 200 hours × ¥1,000 = ¥200,000
• Total subsidy: ¥500,000

The company's effective out-of-pocket cost for training is approximately 25% of ¥400,000, or ¥100,000 (wages are still paid but partially offset by the wage subsidy).

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Eligible Training (OK Examples)

The following are illustrative examples. Actual review will assess the specific content, purpose, and training provider for each application.

Digital Transformation (DX)

• Hands-on Python and data analysis workshops with applied exercises
• Generative AI practical training (prompt engineering, workflow automation)
• Cloud infrastructure management and cybersecurity skills
• Programming for in-house system development

Green Transformation (GX)

• Energy efficiency technologies for carbon neutral operations
• ESG management and non-financial disclosure practices

New Business Domains

• Specialized knowledge for entry into new industries (healthcare, agriculture, etc.)
• Language and overseas regulatory knowledge for international expansion

Ineligible Training (NG Examples)

The following are not eligible (Activation Service):

• General DX or AI briefings, trend overviews, and terminology explanations with no practical skills component
• On-the-Job Training (OJT)—only Off-JT is covered
• Training for welfare or recreational purposes
• Training for individuals who are not Employment Insurance insured persons

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Step 1: Preparation (2–3 Months Before Training Starts)

Two prerequisites must be in place before submitting an application (icloud.co.jp):

① Designate a Vocational Skills Development Promoter Appoint an internal staff member as the designated Vocational Skills Development Promoter. Notification to the labor union or employee representatives is required.

② Create an In-Company Vocational Ability Development Plan Prepare a written plan documenting the company's HR development policies and objectives, based on its business strategy. The plan must be created with input from the labor union or employee representatives.

Step 2: Submit the Training Plan (At Least One Month Before Training Starts)

⚠️ This deadline is the most critical point. If the training plan is not submitted to the regional Labor Bureau at least one month before training begins, that training will be ineligible for the subsidy.(Cuseful)

Main documents to submit:

• Vocational Training Implementation Plan (Form No. 1)
• Business Expansion, etc. Implementation Plan (or HR Development Plan)
• Prior Confirmation Form (Form No. 11)
• List of Eligible Participants (Form No. 4-1)

For revised programs from March 2, 2026 (including HR plan-based training and split payments), paper submission only. The electronic application system has not yet been updated for these revisions as of April 2026 (MHLW).

Step 3: Conduct the Training

• Implement Off-JT training as planned
• Maintain attendance records, payroll ledgers, and training logs
• Actual training hours must total at least 10 hours (Activation Service)
• Only training conducted during scheduled work hours qualifies for wage subsidies (overtime and holiday training is generally excluded)

Step 4: Submit Payment Application (Within 2 Months of Training Completion)

Submit the payment application to the regional Labor Bureau within 2 months of the training end date (icloud.co.jp).

Main documents:

• Payment Application Form
• Training attendance records
• Payroll ledger excerpts
• Receipts and cost documentation for training expenses

Step 5: Review and Payment

The regional Labor Bureau reviews the submitted documents. Due to the number of items reviewed, the process takes time. Expect several months between application and payment receipt.

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Mistake 1: Training Started Before Submitting the Plan

This is the most frequent error. Submitting the training plan at least one month before training begins is an absolute requirement. Training conducted before the plan is submitted is entirely ineligible. Do not assume you can apply retroactively. Contact your regional Labor Bureau as soon as training is under consideration.

Mistake 2: Submitting an Application for On-the-Job Training

This program only covers Off-the-Job Training (Off-JT). Any training that cannot be clearly distinguished from regular job duties is not eligible. Verify that the training is structured as a learning program separate from day-to-day work, even if conducted during business hours.

Mistake 3: Claiming Wage Subsidies for Training Outside Scheduled Hours

Wage subsidies only apply to training conducted during scheduled work hours. Training on weekends or outside contracted hours is generally ineligible (exception: pre-arranged compensatory days off).

Mistake 4: Submitting Applications for General DX or AI Overview Sessions

Briefings or presentations titled "What is DX?" or "AI Use Cases in Business" that do not involve acquiring practical skills are not eligible (Activation Service). The training must help employees acquire specific methods or tools—such as Python programming exercises or hands-on automation workflow development.

Mistake 5: Missing Documents Specific to This Course

Forgetting to include documents specific to the Reskilling Support Course—such as the Business Expansion Implementation Plan and Prior Confirmation Form—will result in rejection. Verify the complete document set with your regional Labor Bureau in advance.

Mistake 6: Attempting Electronic Submission for Post-Revision Applications

Electronic applications have not been updated to reflect the March 2, 2026 revisions as of April 2026. Training plan applications for HR plan-based training and split-payment requests must be submitted on paper to the regional Labor Bureau (MHLW).

Mistake 7: Failing to Verify Eligibility Requirements for the Employer

If the employer does not meet eligibility requirements—including being covered by Employment Insurance, having no premium arrears, and having no history of fraudulent claims—the application will be rejected. Verify eligibility requirements before investing time in the application.

Mistake 8: Attempting to Apply for Both Programs for the Same Training

In principle, it is not possible to claim both the Human Resource Development Subsidy (employer-side) and the Education and Training Benefit Grant (individual-side) for the same training during the same period (Hojyokin Portal). Decide which program to prioritize before enrolling. Applying for separate training programs under each system at different times is generally permitted.

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HRDS Course Comparison

HRDS vs. Education and Training Benefit Grant

When a company funds and arranges training for its employees, the HRDS is the applicable program. When an employee self-directs their own professional development, the Education and Training Benefit Grant applies.

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This course is a time-limited measure, ending on March 31, 2027 (Customedia). The program has been running since FY2022, and no extension or successor program has been announced as of now.

A very common pattern: companies think "we'll apply when we're ready," then miss the one-month-before deadline for the training plan. If you have training in mind, take action now.

1. Consult your regional Prefectural Labor Bureau: For program details and document verification, contact the Human Resource Development Subsidy desk at your regional bureau
2. Consult a certified labor and social insurance attorney: Having a professional handle document preparation and submission helps prevent costly errors
3. Download the latest forms: Get the most current application forms from the MHLW application forms page (from March 2026)

Reference Sources

Human Resource Development Subsidy — Ministry of Health, Labour and Welfare. Ministry of Health, Labour and Welfare (MHLW)

Human Resource Development Subsidy Application Forms (from March 2026) — Ministry of Health, Labour and Welfare. Ministry of Health, Labour and Welfare (MHLW)

Detailed Pamphlet (March 2, 2026 Edition) — Ministry of Health, Labour and Welfare. Ministry of Health, Labour and Welfare (MHLW)

Reskilling Support Course Overview — Hojyokin Portal Editorial Team. Hojyokin Portal