The Japanese welfare ministry plans to allow part-time workers to remain as dependents of spouses for up to two consecutive years even if their annual income temporarily exceeds ¥1.3 million, ministry officials said.
The ministry plans to put the measure in place in October, the officials said.
Currently, part-timers lose their status as dependents if their annual income surpasses ¥1.3 million, requiring them to pay social insurance premiums.
This rule prompts many part-timers to work shorter hours to avoid paying social insurance premiums, a situation blamed for labor shortages.
The ministry also plans to provide subsidies of up to ¥500,000 per worker to companies working to prevent a decline in take-home pay that occurs when people earn an annual income of ¥1.06 million or more, due to higher social insurance premiums under certain conditions.
Those relief measures will remain in place until the country implements drastic social security system reform in 2025. Drastic reform measures are now under discussion at the Social Security Council, an advisory panel to the welfare minister.