Two notable areas of change include 1. ) “All Generation Social Security Reform ” and 2. ) Change to the Payment Rate of Elderly Employment Benefits in April 2025.
1. All Generation Social Security Reform:
All-Generation Social Security Construction Headquarters. The Japanese Cabinet Office official website.
For building a generation-wide social security, the following are listed by the MHLW as “directions to aim for”. WHile these are directional in nature, it is reasonable to assume such amendments will make their way into law.
Reducing the burden on the active generation: In order to change the trend of declining birthrate, we will strengthen support for child-rearing and young people, and while focusing on and making increasing social security benefits more efficient, we will establish a system that supports each other according to our abilities.
Increase the support of the social security system: Promote the employment of women and the elderly by making a social security system that is neutral to the way they work. In addition, in the above reform process, the following contents were listed as “Efforts to consider implementation by fiscal 2028”.
Abolition of corporate-scale requirements for the application of employer insurance to short-time workers. We will continue to consider the abolition of corporate scale requirements, etc. for the conclusion by the end of 2024
Elimination of non-applicable industries for individual offices that use more than 5 people at all times
Expansion of application of employer insurance to workers with less than 20 hours of work per week and individual workplaces that use less than 5 people at all times
Organization of the application of social insurance for freelance gig workers: For those who fall under the “workers” under the current Labor Standards Act, “employability” is also recognized, and it has been clarified that employer insurance is applied except in cases where it is subject to exclusion, and the application is certain, the Labor Bank We are working on cooperation with the government and social insurance administration, and we will steadily promote it. For freelance gig workers who are not recognized as “labor”, we will continue to deepen our consideration of the application of employer insurance.
2. Change to the Payment Rate of Elderly Employment Benefits in April 2025
Changes to Rates. MHLW Website.
Due to the revised Employment Insurance Act, from April 1, 2025, if the amount of wages (Note 1) is less than 64% of the deemed monthly wage (Note 2), the benefit rate for continuing employment for older ages will be 10%. It’s a thing.
(Note 1) For insured persons over the age of 60 and under the age of 65 who continue to employ without receiving a basic allowance, and who have been insured for more than 5 years, the amount of wages paid for each month after the age of 60
(Note 2) The amount obtained by multiplying the daily wage amount calculated by the insured person’s 60th year of age as the date of separation as the date of separation
[Payment rate after April 1, 2020]
64% or less (61% or less): 10% (15%) of the wage paid each month
64% more than less than 75% (61% more than less than 75%): Between 10% (15%) and 0% of the wage amount paid each month, the rate is set within the range where the total amount of wages and benefits does not exceed 75% according to the rate of wage decline
75% or more: not paid
(Note 3) ( ) is the decline rate and payment rate before March 31, 2020
[Target person]
Those who have reached the day they reached the age of 60 after April 1, 2020 (the day when the period of those who have not been insured for more than 5 years at that day has reached 5 years)
