Japan sharply raises fees and tightens rules for foreign residents seeking permanent status

Japan will charge up to ¥75,000 (US$480) for some residence permit renewals and status changes starting next month, while the fee for permanent residency applications will jump twentyfold to ¥200,000 from ¥10,000.

The government is simultaneously tightening eligibility criteria for permanent residency beyond the existing requirement that applicants be able to support themselves. New proposed conditions include above-average household income, sufficient projected pension benefits, Japanese-language proficiency, and demonstrated understanding of Japanese institutions and rules governing daily life.

Foreign labour now drives workforce growth

The policy shift comes as Japan grows more reliant on overseas workers to offset a shrinking, ageing population and widespread labour shortages. Successive governments have widened the channels through which foreigners can enter and work, yet have stopped short of describing Japan as an immigrant society.

Foreign workers hit a record 2.57 million at the end of October last year. Though they represent only about 3 per cent of the labour force, the Bank of Japan estimates foreign workers accounted for more than half of the labour force increase between 2023 and 2024.

Manufacturing employed the largest share at 24.7 per cent of foreign workers last year, followed by services at 15.2 per cent, wholesale and retail at 13.3 per cent, accommodation and food services at 12.4 per cent, and construction at 8 per cent.

Fee burden may fall unevenly

The steep fee increases risk hitting non-regular workers hardest. Japan's 2020 population census showed male foreign workers were far more likely than Japanese men to hold non-regular employment. Among male employees excluding company executives, about 15 per cent of Japanese nationals were in non-regular jobs, compared with roughly 53 per cent of Brazilians, 45 per cent of Indonesians, and around 40 per cent of Vietnamese, Nepalese and Peruvians.

The combined effect of higher fees and stricter residency requirements raises questions about Japan's approach to long-term foreign settlement even as the country depends increasingly on overseas labour to sustain its workforce.

Source: South China Morning Post