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Japan set to ease overtime restrictions under new growth plan

Japan's government has signalled plans to relax overtime regulations as part of a broader economic growth strategy. The move reflects the administration's focus on labour market flexibility.

LSN Malaysia · 1 September 2026

Japan set to ease overtime restrictions under new growth plan

Japan is preparing to revise its working-hour regulations, according to a new growth strategy adopted by Prime Minister Sanae Takaichi's government. The proposed changes would ease restrictions on overtime, marking a significant shift in the country's approach to labour regulations.

The policy revision forms part of a comprehensive economic growth plan designed to boost Japan's productivity and competitiveness. Takaichi, who has previously been outspoken on work ethic issues, has championed the initiative as necessary for economic revitalisation.

The proposed changes come amid ongoing debates in Japan about work-life balance. The country has long grappled with issues related to excessive working hours and their impact on worker wellbeing, prompting previous governments to introduce restrictions on overtime.

Details on the specific scope and implementation timeline for the regulatory changes have not yet been finalised. The government is expected to provide further clarity on how the revised rules will operate and what safeguards, if any, will remain in place to protect workers.

The proposal is likely to generate discussion among labour unions and workplace advocates, who have traditionally pushed for stricter protections against overwork in Japan's corporate culture.