年金ねんきん制度せいど改革かいかく関連かんれん法案ほうあんが閣議かくぎ決定けってい

The bill related to pension system reform, whose contents had been difficult to coordinate between the government and the Liberal Democratic Party, was approved by the Cabinet on the 16th.

The main point is to abolish the wage requirement known as the 1.06 million yen barrier so that people working part-time and similar jobs can more easily join the Employees Pension Insurance. The government aims to have this passed in the current Diet session.

The bill stipulates that, taking into account the diversification of work styles, the so-called 1.06 million yen annual income barrier—a wage requirement that makes it difficult for part-time workers and others to join the Employees’ Pension Insurance—will be abolished within three years of the law’s promulgation.

It is also clearly stated that the company size requirement of having 51 or more employees will be gradually relaxed starting from October 2027, and will be eliminated entirely in ten years.

In expanding the coverage of employees pension insurance, in order to prevent people from refraining from working due to the burden of insurance premiums, a system will be established from next October that allows companies to bear a greater share of the premiums, which are usually split evenly between labor and management, for up to three years. The government will fully support the additional amount borne by companies.

On the other hand, measures to use Employees’ Pension fund reserves to boost the Basic Pension have also been considered as one of the main pillars, but since concerns were raised by the Liberal Democratic Party about the temporary decrease in Employees’ Pension benefit levels, adjustments became difficult and the measure was not included.

The government plans to aim for the passage of the bill during the current Diet session.

However, the opposition parties are calling for revisions, arguing that if measures to raise the basic pension are postponed, the so-called employment ice age generation will not be able to secure sufficient pensions in the future. This is expected to become a point of contention in the deliberations.