In June 2025, the Ministry of Health, Labour and Welfare announced a legal reform to expand eligibility for social insurance coverage (Health Insurance and Employees’ Pension Insurance), in response to increasingly diverse employment patterns and the growing number of short-hour workers.
■ Key Points of the Reform
The reform introduces three major changes:
(1) Gradual reduction and removal of the company-size requirement
Short-hour workers who work 20 hours or more per week will gradually become eligible for social insurance regardless of the size of their employer.
(2) Elimination of the wage requirement
The monthly wage threshold of 88,000 yen (annual income of approximately 1.06 million yen) will be abolished—effectively removing the so-called “1.06-million-yen barrier.”
(3) Expansion of coverage for individual business establishments
Individual businesses employing five or more workers will become eligible across all industries, instead of only the previously designated 17 industries.
The revised rules take effect in October 2029.
■ Expected Impact
With the removal of both the company-size and wage requirements, short-hour workers who work 20 hours or more per week will become eligible for social insurance, regardless of the size of their employer.
The implementation will be phased in over a 10-year period, and the timing will differ depending on employer size.
For HR and labor managers, early preparation is essential.
Recommended preparation steps include:
- Identifying employees who may newly become eligible (working hours, wages, expected period of employment, etc.)
- Estimating the number of newly insured employees and the additional cost burden
- Reviewing internal administrative procedures, including preparation for filing eligibility acquisition notifications
- Preparing and distributing employee-friendly materials explaining the reasons for coverage, benefits, insurance premiums, and changes in take-home pay
- Reviewing national support programs for small and micro-sized companies (e.g., temporary premium relief measures)
This expansion of coverage will have a significant impact on companies, especially in the context of diversifying work styles and securing human resources.
Our firm provides comprehensive support services, including identifying eligible employees, preparing and filing all necessary social insurance documents, and handling the entire application process on your behalf.
We help reduce the administrative burden on HR and labor personnel and ensure smooth compliance with the new system. Please feel free to contact us for assistance.
