EXCLUSIVE: Japan’s Corporate Pension, Insurance Schemes to Cover More Part-Timers

August 7, 2018

Tokyo- The Japanese government plans to allow more part-time workers to join the corporate pension and health insurance schemes, with a view to reinforcing its financial base for Japan's overall pension and health insurance systems amid the aging of the country's population, Jiji Press learned Monday.

Currently, part-timers who work for at least 30 hours a week or who work less while meeting certain wage conditions at companies with at least 501 workers are covered by the "kosei nenkin" pension and "kenpo" insurance schemes. In addition, part-timers working at smaller firms can join the schemes if their employers conclude relevant accords with labor unions.

The Health, Labor and Welfare Ministry is considering lowering the 501 personnel threshold to instantly expand the number of policyholders, hoping to change the rule in fiscal 2020, informed source said. To this end, the ministry plans to set up a panel of experts and employers in September, they added.

The government also hopes that making more part-timers eligible for the corporate pension benefits and health insurance protection will particularly encourage women to join the country's workforce.

Employers, however, may oppose the deregulation on the grounds that the move will increase their financial burdens, as they have to shoulder half of kosei nenkin and kenpo premiums under the schemes, people familiar with the issue said.

In June, the government adopted a basic fiscal and economic policy that states its intention to create pension and health insurance systems that cover all workers. Jiji Press