Clarifying point: this is the Tokyo local government not a national policy.
And even in Tokyo it only applies to metropolitan (roughly, state) workers, not the ward (roughly, city) governments. According to the data below, there's anywhere from 33k to 161k metropolitan employees depending on where you draw the line. https://www.metro.tokyo.lg.jp/tosei/hodohappyo/press/2024/01...
Sounds like office workers only.