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The labour ministry ceased pressuring companies to limit overtime to 45 hours per month on September 1, 2026, even for those with agreements permitting up to 100 hours. This policy adjustment follows the adoption of a growth strategy by Prime Minister Sanae Takaichi’s government in July. The Peninsula Qatar reported on the development under the headline “Japan to relax overtime regulation under workaholic PM”.
Roughly 40 per cent of businesses in Japan function under labour-management agreements that legally permit monthly overtime of up to 100 hours, according to the labour ministry. A labour ministry official explained that the previous guidance aimed to reduce risks of karoshi, the term for death from overwork. Labour standards inspection offices will no longer apply pressure to observe the 45-hour limit under the revised rule.
The Japan Chamber of Commerce and Industry’s May survey found the earlier cap had restricted operations for around 20 per cent of small and mid-sized businesses, particularly in construction, transport and hospitality. These sectors have faced acute staffing shortages exacerbated by demographic trends. The change is intended to allow more adaptable work arrangements to support economic activity.
Prime Minister Sanae Takaichi, who has publicly identified as a workaholic, directed revisions to working hour regulations while stressing the importance of maintaining employee health. The adjustment references the 2019 work style reform that established the initial overtime limits with penalties for violations. Earlier assessments indicated the caps had helped curb excessive working hours across many industries.
Labour groups have voiced worries that the easing could signal a return to practices linked to overwork, with some describing it as an unacceptable shift. A survey by the Ministry of Health, Labour and Welfare discovered that merely 10.5 per cent of employees desired longer hours, while the majority favoured reductions or upheld the 45-hour standard. This data highlights a divergence between policy direction and worker preferences.
Japan introduced enforceable overtime limits in 2019 as part of efforts to combat karoshi following several high-profile cases. The rules set a baseline of 45 hours per month and 360 hours per year, with exceptions requiring strict conditions. By 2024, the framework had expanded to previously exempt professions including drivers and physicians, per government records.
