Japanese Prefectures Expand Remote Work Allowances to Ease Utility Costs

Starting this month, twelve Japanese prefectures, including Tokyo and Fukuoka, will introduce a monthly allowance of ¥3,000 to help employees offset utility costs incurred while working from home, according to a recent Jiji Press survey.

This move follows the lead of Hokkaido, Ishikawa, Hyogo, and twelve other prefectures that implemented the same allowance in April 2024. Saitama Prefecture will offer up to ¥3,000, aligning with the ¥3,000 monthly stipend already provided to national government workers.

The survey, conducted between January 22 and March 3, revealed that among Japan’s 47 prefectures, a growing number are adopting the measure to support remote work. However, among 20 major cities, only Osaka’s municipal government currently offers such an allowance, introduced last April.

Many local governments cite limited eligibility, which is tied to requirements like a minimum number of remote work days, as a reason for not adopting the policy. Additionally, cities face challenges implementing remote work due to high demand for in-person, over-the-counter services.

Even where the allowance exists, usage remains low. Hiroaki Inatsugu, a Waseda University professor specializing in public employee programs, noted that the small number of recipients reflects “delays in digitalization by local governments.”

He also emphasized the allowance’s importance amid a shortage of local government workers. Inatsugu suggested that “Making the allowance available allows local governments to show students seeking a job that they have an environment that’s friendly to remote work.”