The government is preparing to scrap the ¥1.06 million annual income threshold for part-timers to join the kosei nenkin employee pension program in October 2026, sources have said.
The government believes that scrapping certain conditions for the program will expand coverage to more part-timers, increasing their pension benefits. These changes are expected to be included in a pension reform bill set to be submitted to parliament early next year.
Currently, dependent spouses of salaried workers are eligible for basic pension benefits without paying premiums.
Spouses working part-time at companies with at least 51 employees have to join the kosei nenkin program and pay premiums if they earn ¥88,000 or more per month, equivalent to ¥1.06 million or more per year, or work 20 hours or more per week. This makes some part-timers curb their working hours to avoid paying premiums.
The government determined that the ¥1.06 million condition can be scrapped as minimum hourly wages around the country will be at least ¥1,016 starting as early as next year, meaning that those working 20 hours a week will earn more than the income threshold.
It also aims to abolish the company size requirement, making workers at firms with fewer than 51 employees join the kosei nenkin system if they work over 20 hours a week.
But the government is carefully mulling the timing of the move and other support measures as it faces pressure from both ruling and opposition lawmakers to give consideration to affected businesses.
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