Japan lifts overtime cap pressure as PM Takaichi pushes growth agenda

From Tuesday onward, Japan’s labor standards inspection offices will no longer enforce the advisory 45-hour monthly overtime ceiling for companies operating under special labor-management agreements, a policy shift promoted by Prime Minister Sanae Takaichi’s growth strategy. Roughly 40 % of firms, especially in construction, transportation and hospitality, have contracts that allow up to 100 overtime hours, and business groups say the previous cap hampered operations amid a deepening labor shortage.

The labor ministry cautioned that exceeding 45 hours raises the risk of karoshi, yet it will continue to monitor employee well-being and issue guidance when health risks appear. Trade unions, notably the National Confederation of Trade Unions (Zenroren), denounced the move as a rollback of recent work-life-balance reforms. Enterprises lacking special agreements remain legally bound to the 45-hour limit, and any work beyond statutory hours remains illegal.