The scope of part-timers eligible for social insurance will be expanded in phases from October 2022. This article covers the change schedule, requirements and necessary preparations.
[1] Requirements for registering part-timers in the social insurance program
Social insurance (medical insurance, employees’ pension insurance)
In addition to executives and regular employees, part-timers who satisfy certain conditions are also entitled to social insurance (medical insurance and employees’ pension insurance.) As a key requirement, the part-timers’ scheduled work hours per week or per month must be over three-thirds of work hours of regular employees who engage in equivalent duties in the same workplace (The three-thirds requirement.)
Even if the three-thirds requirement is not met, part-timers at a designated company applicable to social insurance with at least 501 employees or a company with 500 or less employees who have labor-management agreement to adopt the same requirements as designated applicable companies (collectively referred to as “designated applicable companies”) may be enrolled in the insurance program by satisfying all of the following four requirements.
<Requirements for insuring part-time workers>
1. The worker’s weekly scheduled work hours is at least 20 hours;
2. The worker’s employment period is expected to continue for one year or longer;
3. The worker’s monthly wage is 88,000 yen or over;
4. The worker is not a student.
[2] Expansion of the scope of social insurance entitlement
Following two changes have been made in social insurance requirements.
1. Expansion of the scope of designated applicable companies
Designated applicable companies are required to have “501 or more insured employees” until September 30, 2022. This rule will be changed to “101 or more employees” on October 1, 2022, and “51 or more employees” from October 2024. For instance, if a company has 80 regular employees and 60 part-timers, among which 30 are enrolled in the employees’ pension insurance, the total number of insured employees is 110. Such company will become designated applicable company from October 1, 2022, unless the condition changes.
2. Requirements for enrollment
Among the requirements for insured part-timers described in [1], the item 2 regarding the expected employment period will be changed from “one year or longer” to “over two months” in October 2022. This change will also be applied to firms that currently correspond to designated applicable companies.
[3] Monthly wages of insured part-timers
Among the requirements for insured part-timers described in [1], this section explains the item 3 about the monthly wage, which can be a controversial point. A part-timer’s standard monthly wage is calculated based on the worker’s weekly, daily or hourly wage, plus other allowances. Meanwhile, the following items are excluded from the calculation.
[Excluded items]
- Irregular allowances and allowances paid for a multiple-month period (marriage allowance, bonuses, etc.)
- Allowances for overtime work, holiday work and late-night work (overtime extra wages, etc.)
- Allowances that are excluded by the Minimum Wage Act (perfect or high attendance allowance, commutation allowance, family allowance.)
Please note that commutation expenses and family allowances must be excluded from the calculation. Since the eligibility is determined based on the standard monthly wage, overtime allowances must also be excluded.
Meanwhile, the wage used in specifying the standard renumeration for social insurance includes the base salary, managerial allowance, family allowance, housing allowance, family separation allowance, place-of-work allowance, commutation allowance, and overtime allowance, either paid in cash or in kind. Please be careful in calculating monthly wages for the purpose of checking part-timers’ insurance eligibility, since included items are different.
Companies who will become designated applicable companies from October 2022 should start preparations by checking part-times’ insurance eligibility, providing explanation about the change to applicable part-timers, and creating necessary documents, to submit the application smoothly after the change. If you face any problem with the procedure, please contact us.
Reference
The Labour Ministry’s special website
https://www.mhlw.go.jp/tekiyoukakudai/
The Japan Pension Service
https://www.nenkin.go.jp/oshirase/topics/2021/0219.html/
https://www.nenkin.go.jp/service/kounen/tekiyo/jigyosho/tanjikan.html/
The contents are valid as of the creation date of this article.
