The government is preparing to remove the annual income threshold of 1.06 million yen for part-time workers wishing to join the program. Kosei Nenkin employee retirement program in October 2026, sources said.

The government believes that removing certain conditions from the program will expand coverage to more part-time workers, thereby increasing their retirement benefits. The changes are expected to be included in a pension reform bill expected to be submitted to Parliament early next year.

Currently, dependent spouses of employed workers are eligible for basic retirement benefits without paying contributions.

Spouses working part-time in companies with at least 51 employees must join the kosei nenkin program and pay bonuses if they earn ¥88,000 or more per month, equivalent to ¥1.06 million or more per month. year, or if they work 20 hours or more per week. . This pushes some part-time workers to reduce their working hours to avoid paying premiums.

The government has determined that the 1.06 million yen condition can be removed, as the minimum hourly wage nationwide will be at least 1,016 yen as early as next year, meaning those who work 20 hours per week will earn more than the income threshold.

It also aims to abolish the company size requirement, requiring workers in companies with fewer than 51 employees to join the kosei nenkin system if they work more than 20 hours per week.

But the government is carefully considering the timing of the move and other support measures as it faces pressure from ruling and opposition lawmakers to consider affected businesses.