Japan’s Ministry of Health, Labour and Welfare is relaxing social insurance certification criteria starting April 2026 to prevent part-time workers from limiting their working hours to maintain dependent status. The measure allows part-time workers, including housewives, to remain as dependents even if their annual income exceeds 1.3 million yen, specifically in cases where income increases due to sudden rises in overtime.
This policy shift aims to eliminate the practice of work limiting
, where employees intentionally restrict their hours to avoid crossing income thresholds that would trigger mandatory social insurance enrollment or the loss of dependent benefits.
October 2026 Reforms and the Wage Requirement
The April relaxation is part of a broader series of pension system reforms and expansions of social insurance coverage. According to a January 2026 leaflet from the Ministry of Health, Labour and Welfare, the monthly wage requirement of 88,000 yen is scheduled to be abolished in October 2026.
Under the revised system, part-time workers who work 20 hours or more per week will, in principle, be subject to social insurance coverage, regardless of the monthly wage, subject to student status and company size requirements.
The abolition of the 88,000 yen monthly threshold effectively removes the ¥1.06 million annual income barrier
that previously influenced the working hours of many part-time employees.
Expansion of Mandatory Coverage
The criteria for which companies must enroll part-time workers have been steadily lowering. As of October 1, 2024, companies with more than 50 employees were required to enroll part-time employees in social insurance, a reduction from the previous threshold of 100 employees.
Currently, the requirement for social insurance coverage generally applies to employees who meet the following criteria:
- They are not a student.
- Their prescribed working hours are at least 20 hours per week.
- They earn at least 88,000 yen per month.
- They are expected to continue employment for more than two months.
However, due to rising regional minimum wages, the Ministry of Health, Labour and Welfare noted in January 2026 that employees working 20 hours or more per week will, in most cases, automatically meet the monthly wage requirement even before the October 2026 abolition.
Company Size and Dependent Status
The government continues to reduce the company size requirement for these rules. The current rule applies to companies with 51 or more employees who are insured under the Employees’ Pension Insurance.
The move to make the relaxation of income thresholds permanent follows earlier efforts by the welfare ministry to allow workers to remain dependents even when exceeding set thresholds, as reported in January 2025.
These reforms are designed to address labor shortages by removing the financial disincentives that discourage part-time workers from increasing their hours and earnings.