Saga Prefecture expands subsidies to link capital investment with wage increases

Saga Prefecture is expanding its support for small and medium-sized enterprises (SMEs) to promote wage increases through capital investment. Under the ‘NEXT Wage UP Project,’ the prefecture has allocated 240 million yen in its June 2026 supplementary budget.

To qualify for the subsidy, businesses must implement a wage increase of at least 10 percent. Eligible companies can receive up to 40 million yen, covering up to three-quarters of the costs associated with capital investments and operational improvements. The initiative aims to help businesses secure the financial resources necessary for higher wages by improving productivity, thereby ensuring talent retention and sustainable growth.

Since its inception in 2023, the project has seen significant engagement. Approximately 1,400 businesses have received subsidies through the first five rounds, and the sixth round is currently processing approximately 490 applications, which has already exceeded the allocated budget.