Japan to Have More Part-Timers Join Employee Pension Program

Tokyo, Jan. 21 (Jiji Press)--Japan plans to have a wider range of part-timers join the “kosei nenkin” employee pension program by changing some rules, sources have said.

At present, companies with 51 or more employees are obligated have their part-time workers join the kosei nenkin program, which pays benefits adding to those paid under the basic pension program, which provides 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 yen or more to join the kosei nenkin program, when minimum wages rise to 1,016 yen or more per hour in all prefectures.

[Copyright The Jiji Press, Ltd.]