Industry-Highest Standard: Raising Minimum Annual Salary for Home Managers (Facility Directors) to 7 Million JPY. Continuing 10% Profit Redistribution to Employees. Aiming to Make Elder Care a Dream Career by 2030

Alivemedicare Co., Ltd. (Headquarters: Tokyo; CEO: Yuta Yasuda), which operates 12 fee-based elderly care homes primarily in Tokyo, announces a significant revision to the compensation structure for on-site leaders—'Home Managers (Facility Directors)'—effective June 2026, setting the minimum annual salary (floor) at 7 million JPY.

This improvement in working conditions is funded by on-site operational achievements, including the full acquisition of the 'Productivity Promotion System Surcharge,' newly introduced in the 2024 care fee revision, and the maintenance of high occupancy rates that support consecutive achievement of initial budget targets. Anticipating the severe labor shortage known as the '2030 Problem,' and as a top-tier provider of premium homes for affluent clients, we aim to transform elder care into a 'dream career where expertise is properly valued.'

Overview of the Revision: A Salary Structure Far Exceeding Industry Averages. Major Improvements Across All Positions

While the average annual income for facility directors in the care industry is approximately 5.3 million JPY (※1), our company has set the minimum annual salary for Home Managers at 7 million JPY—over 1.3 times the industry average—redefining the value of management roles overseeing on-site operations.

Additionally, as part of career development and on-site leadership training, we have established our own qualification system called 'Care Leader (Kaigoshi-chō).' In conjunction with this revision, we will raise the average annual income for Care Leaders to 6 million JPY. Furthermore, we ensure an average annual income of 4.2 million JPY for caregiving staff who support daily care operations, implementing a company-wide base pay increase.

Separately, we maintain our unique operational rule of 'redistributing 10% of operating profit to employees.' We set clear goals for each home and department and have built a system to directly distribute bonuses based on achievement levels. By creating an environment where those who deliver results and work hard are fairly rewarded, we have established a sustainable system where employees can personally feel performance improvements, stay highly motivated, and continue striving.

Three Key Achievements Enabling Significant Compensation Improvements

This salary increase is not merely a wage hike, but a 'return of results' generated by on-site efforts led by Home Managers.

- Maximum Utilization of the 'Productivity Promotion System Surcharge' and On-Site Reform

Home Managers have led initiatives to improve productivity, including active use of ICT and re-evaluating task allocation. Establishing a system that enabled all homes to quickly acquire this new government incentive became a major funding source for wage increases.

- Stable Revenue Structure Through High Occupancy Rates

The foundation for consecutive achievement of initial budgets lies in the 'high occupancy rates (high utilization)' driven by high-quality management from each Home Manager. By directly linking occupancy-based revenue to salaries, we have built a sustainable business model.

- Stable Operations Through Overseas Talent Retention

The CEO personally traveled to India and Indonesia to develop unique recruitment channels. By collaborating with local governments to create a 'debt-free pathway to work in Japan,' we have established an environment where talented overseas professionals can work long-term with confidence. We have successfully recruited and retained high-caliber talent, including those with local nursing qualifications, and this fiscal year, approximately 120 overseas staff—representing 40% of total employees—will be actively contributing. This robust foundation, which resolves the industry-wide challenge of severe labor shortages and enables stable operations without reliance on temporary staff, is precisely what allows us to generously reward existing employees.

Background: Overcoming the Crisis of 'Care Collapse' by 2030 Through Human Power

As Japan's aging accelerates, a Ministry of Health, Labour and Welfare survey (※2) revealed that the total number of care workers, previously on an upward trend, has declined for the first time since surveys began—dropping by approximately 15,000 in one year.

In addition to this severe decline in active caregivers, future demand growth is expected to create a shortage of about 270,000 care workers by the end of FY2026, and approximately 570,000 by FY2040 when the elderly population peaks. The sustainability of Japan's social security system is now fundamentally at stake.

Underlying this talent drain are persistent issues such as significant wage gaps compared to other industries and the lingering societal perception that 'caregiving equals self-sacrifice.'

As a top-tier provider of premium homes, we believe that by first embodying 'care as a career that inspires the next generation,' we can attract top talent and elevate the entire care industry's standards and public image.

Message from CEO Yuta Yasuda

My original experience as a facility director is the foundation. The world I've always dreamed of: 'Where Professionals Are Rewarded'

Home Managers hold an extremely challenging 'management role' responsible for the lives of residents and staff.

I personally experienced this immense pressure when I served as a facility director.

Until then, I could focus entirely on being a frontline expert, dedicating myself to caregiving and residents. But the moment I took a leadership position, responsible for managing people and organizations, I faced its true difficulty.

A Home Manager is an independent 'entry point to entrepreneurship,' leading an entire organization. That is why I have always wished to provide compensation commensurate with this responsibility—it has been my dream.

Additionally, investing in our 'Care Leader' system to develop on-site leaders and in rewarding frontline staff is essential to uphold their professional pride.

We aim to transform elder care into a 'desirable and attractive industry that young people aspire to join' by 2030. I hope this decision becomes a turning point toward a society where caregiving expertise and management value are properly recognized.

Company Overview

Company Name: Alivemedicare Co., Ltd.

Headquarters: 2F, Ueno Building, 1-17-5 Koenji-kita, Suginami-ku, Tokyo 166-0002

Founded: June 1980

Representative: CEO Yuta Yasuda

Capital: 50 million JPY

Business: Planning and operation of care-integrated homes

URL: https://lit.link/alivesns

※1 Based on average annual income data for facility directors and managers from the 'FY2022 Care Labor Actual Conditions Survey (Organization Survey, Reference Volume pp.144–146)' by the Public Interest Foundation for Care Labor Stability (calculated from average monthly salary of 383,228 JPY and average annual bonus of 852,258 JPY; average annual income approx. 5.27 million JPY).

※2 Based on full-time equivalent staff trends from the Ministry of Health, Labour and Welfare's 'Survey on Care Worker Treatment Conditions,' and projections from the 'Ninth Long-Term Care Insurance Business Plan regarding required care personnel.'