'Income ceiling' holding Japan's part-time workers back

TOKYO, Sep 27 (News On Japan) - Part-time employees in Japan are limiting their working hours to avoid the burden of social insurance premiums, creating an income ceiling beyond which they are unwilling to work.

Many businesses in Japan that rely on part-time workers such as supermarkets are currently facing a serious shortage of workers, with the "¥1.3 million income ceiling" being a significant factor behind this.

When the annual income of a worker who is financially dependent on their spouse exceeds ¥1.3 million, they are no longer covered by health insurance as a dependent family member. Instead, they have to pay health insurance and pension premiums on their own, which results in additional payments of about ¥300,000 annually.

To avoid crossing this ceiling, there has been an increase in part-time employees reducing their annual working hours.

To alleviate the issue, the government is considering allowing individuals to remain dependents for up to two years, even if their annual income exceeds ¥1.3 million temporarily.

However, experts argue that a long-term solution is necessary and that simply encouraging more work for one year will not resolve the income ceiling issue.

by Brian Dentry

Japan Welcomes New Generation of Adults

Ceremonies celebrating those turning 20 were held across Japan on January 12th, with events taking place nationwide to mark Coming of Age Day.

China Begins Restricting Rare Earth Exports to Japan, U.S. Paper Reports

The Wall Street Journal reported on January 8th, citing two Chinese exporters, that the Chinese government has started imposing limits on shipments of rare earths and related materials bound for Japan.

JAXA’s Oldest Astronaut Set for Long-Term Stay on ISS

Osamu Suwa, an astronaut with the Japan Aerospace Exploration Agency (JAXA), is set to undertake his first long-term stay aboard the International Space Station, becoming the eighth Japanese astronaut to do so.

Kyoto Student Crowned First Lucky Man

A traditional New Year event known as the “Lucky Man Selection,” in which participants compete to be the first to pray for the new year, was held on January 10th at Nishinomiya Shrine in Hyogo Prefecture, the head shrine of “Ebessan,” the deity of prosperous business.

N-BOX Tops Japan’s New Car Sales for Fourth Straight Year

According to vehicle-by-model new car sales figures released on January 8th by the Japan Automobile Dealers Association and the National Light Motor Vehicle Association, the best-selling vehicle in Japan in 2025 was Honda’s light vehicle N-BOX, marking its fourth consecutive year at the top of the rankings.

MEDIA CHANNELS

MORE Business NEWS

End of an Era for a Long-Running Youth Fashion Hub in Osaka

For more than three decades, Shinsaibashi OPA, long regarded as a landmark in Osaka’s Minami district, closed its doors on January 12th, bringing an end to 31 years of history.

Challenging the Disposal of 560,000 Tons of Clothing a Year

As mass production and mass consumption continue to drive the disposal of some 560,000 tons of clothing each year, there is growing urgency to reduce waste and build systems that circulate garments as reusable resources rather than discards.

Japan’s First Integrated Resort Takes Shape With 27-Story Building

A 27-story building will serve as the core facility of the integrated resort (IR) that includes a casino now under construction in Osaka City, it has been learned.

N-BOX Tops Japan’s New Car Sales for Fourth Straight Year

Japan’s Real Wages in November Fall 2.8%

In Japan, real wages in November, adjusted for price fluctuations, fell 2.8% from the same month a year earlier, marking the 11th consecutive month of decline.

Japanese Industry on Edge as China Tightens Export Controls

Economic circles in Japan are growing increasingly uneasy after the Chinese government announced a blanket ban on exports to Japan of dual-use goods that could be diverted for military purposes, raising concerns that rare earths could be included in the scope of the restrictions.

Toyota Leads Japanese Carmakers as U.S. Sales Rise Despite Tariffs

New vehicle sales by six Japanese automakers in the United States rose 2.4% from the previous year to 6,023,492 units in 2025, the companies announced on January 5th, as demand remained firm despite higher tariffs introduced under the Trump administration, with three manufacturers surpassing their year-earlier results.

Goldman Sachs May Launch New Japan-Focused Real Estate Fund

Goldman Sachs, a major U.S. financial institution, is reportedly planning to launch a new fund focused on real estate investments in Japan, according to Bloomberg.

< 2 3 4 5 >