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Japan’s Ministry of Health, Labor and Welfare stopped issuing uniform administrative guidance that pushed firms to limit overtime to 45 hours per month even when labor agreements permitted more, with the change taking effect at the start of September 2026. The adjustment allows companies to utilize the full legal overtime framework of up to 100 hours in a single month and 720 hours annually if they implement measures to protect worker health and secure agreements with employees. A report in The Japan Times noted that the shift follows requests from business groups seeking greater flexibility amid ongoing labor shortages across multiple sectors.[[1]](https://www.japantimes.co.jp/news/2026/08/30/japan/society/japan-work-life-overtime/)
Prime Minister Sanae Takaichi directed labor officials last year to review working-hour regulations while stressing the need to maintain physical and mental health and respect employee preferences, according to sources cited by The Mainichi. Takaichi, who campaigned on similar pledges during the Liberal Democratic Party leadership race, has been described in regional coverage as a workaholic figure who once claimed to sleep only three hours a night. The directive also touched on promoting side jobs and raising the minimum wage as part of broader efforts to accommodate diverse work styles.
Overtime caps with penalties were introduced in April 2019 under the work-style reform law, setting a principle limit of 45 hours per month and 360 hours per year. Even in special circumstances, overtime must stay below 100 hours monthly and average no more than 80 hours over several months, a framework extended to previously exempted industries such as construction and medicine in 2024. The Japan Labor Issues publication detailed how the 2018 legislation imposed binding penalties to curb excessive hours that had long been common in Japanese workplaces.[[2]](https://www.jil.go.jp/english/jli/documents/2025/054-05.pdf)
A nationwide survey conducted by the Ministry of Health, Labor and Welfare last October found that only 10.5 percent of workers wanted their hours to increase while 30 percent preferred a decrease. Nippon.com reported that 93 percent of respondents viewed 45 hours as an appropriate legal upper limit for monthly overtime, with just 7 percent considering higher amounts reasonable. The survey of 3,000 workers underscored limited appetite for longer hours despite government moves toward flexibility.[[3]](https://www.nippon.com/en/japan-data/h02737/)
Labor standards inspection offices previously applied blanket guidance requiring overtime reductions below 45 hours monthly for nearly all enterprises, regardless of existing agreements. The ministry’s new approach evaluates each case individually based on health protections and labor-management consensus, according to coverage in the Nikkei newspaper. This policy shift arrives five years after the original reform law came due for review, opening debate on whether it represents a step back from curbing karoshi, or death from overwork.
Business lobbies had pressed for the change to help address demographic pressures that have tightened the labor market in recent years. The relaxation applies to both white-collar and blue-collar roles, potentially aiding sectors ranging from technology development to manufacturing floors. Officials have maintained that worker safeguards remain central to the updated guidance framework.
