As part of measures for declining birthrate, the government various support for parents and children. This article explains about the special exception to the pension calculation method.
[1] Standard monthly remuneration for the Employees’ Pension Insurance
When an employee becomes enrolled in the Employees’ Pension Insurance system, the standard monthly remuneration is determined based on the worker’s salary. The standard monthly remuneration is used to calculate premiums paid by an employee and the company and the amounts of pension the employee will receive in the future.
[2] Special exemption in calculating pension figures
In the case the standard monthly remuneration of a worker raising a child younger than three has decreased from the level before the childcare period, the special exemption will be applied to the rule of calculating pension to receive in the future. This system is aimed to support workers with children, since their standard renumerations often decline as they reduce work hours or cut overtime to care for children.
By using the special exemption, the standard remuneration before starting childcare will be maintained, allowing workers to receive pension based on the original pay in the future. There is no particular downside to this system, since workers will resume premium payment based on the standard remuneration after the childcare period.
[3] Omission of document attachment
To apply for the special exception, workers submit the designated form (Employees’ Pension Insurance Childcare Period Standard Monthly Remuneration Special Exception Request) through their companies by attaching the two documents below.
1. Family register (or an extract) or certification of family register description
2. Original copy of resident record
There were amendments regarding these documents in November 2024 and January 2025. Document 1 may be omitted if the company has confirmed the relationship of the worker and relevant child in the family register or an extract and check off the column in the application form, or if both of the worker and the child have Japanese family register and their individual numbers (“My Number”) are stated in the application form. Document 2 may also be omitted if the individual numbers of the worker and the child are included in the application form.
The special exception application should be submitted by a company based on worker’s request. If there are employees who may be eligible to the exception, companies should inform them of the system.
In the case a worker left a company before starting childcare and resumed work during the childcare period, and the worker was under the Employees’ Pension Insurance during the year up to the month before starting childcare, the standard remuneration of the month the worker was last covered by the pension insurance will be used as “the remuneration before the childcare period.” If workers raising children under age three joins the company, please explain about the special exception rule.
[Reference]
Japan Pension Service, “Standard monthly remuneration during the childcare period”
https://www.nenkin.go.jp/service/kounen/hokenryo/menjo/20150120.html
*The information is valid as of the date of this article.
