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GUIDE · BASICS

Subsidy vs. grant: hojokin and joseikin

補助金と助成金の違いTwo words you will see on every Japanese funding page

Japanese public funding comes in two main kinds. Hojokin are competitive subsidies for investment. Joseikin are employment grants you receive when you meet the conditions.

Updated October 20, 2026 · Checked against the official site by our editors

Hojokin

Compete

Selected by review, budget-limited

Joseikin

Qualify

Paid when the conditions are met

Both

Not loans

No repayment if you follow the rules

Paid

Later

You pay first, then claim

Side by side

Hojokin 補助金Joseikin 助成金
Run byMainly the SME Agency (METI) and local governmentsMainly the Ministry of Health, Labour and Welfare
ForInvestment: software, equipment, new business, marketingEmployment: hiring, wages, training, working conditions
SelectionCompetitive review, in rounds with deadlinesMeet the requirements; many accept applications all year
Typical size¥500,000 to ¥100MHundreds of thousands to a few million yen
Who may apply for you, for a feeGyoseishoshi 行政書士Sharoshi 社会保険労務士
ExamplesDigitalization & AI, Sustainability, Labor-Saving, MonozukuriCareer-Up, Work Improvement

The words are not always used strictly — some local “joseikin” work like competitive subsidies. Always read the guidelines.

What they have in common

  • Not loans. You do not pay them back if you follow the rules.
  • Paid afterwards. You spend first, report, and then receive the money.
  • Usually taxable. They are generally counted as business income — ask a tax accountant.
  • One cost, one program. You cannot claim the same cost from two programs.

Misuse is expensive

For employment grants obtained by fraud, the ministry requires full repayment plus an extra 20% and late charges, bans the business from employment grants for 5 years, and may publish its name. Subsidies have similar return rules.

Which should you look at first?

Buying something — software, a machine, a renovation? Start with hojokin: Digitalization & AI, Labor-Saving or Sustainability.

Hiring, converting staff or raising wages? Look at joseikin: Career-Up and Work Improvement. They have no competition, but the paperwork must start before you act.

FAQ

What is the difference between hojokin and joseikin?

Hojokin (補助金) are mainly competitive subsidies for business investment, selected by review within a budget. Joseikin (助成金) are mainly employment grants from the labour ministry, paid when you meet the conditions. Both are paid after you spend and do not need to be repaid if you follow the rules.

Do I have to pay back a Japanese subsidy?

No, as long as you follow the rules. Some programs ask for part of the money back if you miss wage targets, and misuse or fraud leads to repayment and penalties.

Are subsidies taxable in Japan?

They are generally treated as business income. A tax accountant (税理士) can explain how they affect your taxes and any special treatment for equipment.

Sources

This page is a plain-English summary, not legal advice. The official Japanese guidelines always take priority.

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