Japan plans to have a wider range of part-time workers join the kosei nenkin employee pension program by changing some rules, sources have said.
Currently, companies with 51 or more employees must have their part-time workers join the kosei nenkin program, which pays benefits on top of those paid under the basic pension program providing universal coverage.
The government plans to lower the corporate size threshold to 21 employees in October 2027 and scrap it two years later.
The government sees the need to take the gradual approach in view of the additional costs that companies affected by the change would need to bear. Kosei nenkin premium payments are split in half between workers and their employers.
The government also plans to scrap the rule requiring part-timers with an annual income of ¥1.06 million or more to join the kosei nenkin program, when minimum wages rise to ¥1,016 or more per hour in all prefectures.
From October 2029, workers will be required to join the kosei nenkin program if they work at least 20 hours a week, regardless of the number of employees at their company and their income.
The rule changes will be included in legislation to reform the country's public pension system to be submitted to the ordinary parliamentary session starting on Friday.
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