We hope you like our weekly Haines Global Pensions updates. This week our Asia Pacific tour moves onto Japan.
🎌 Like Australia later this year (see our post from last month), Japan is implementing measures to improve pension outcomes for females. Our research shows the country is trying to make things easier for parents of school aged children and also people over age 40 with elderly parents.
A new reform will now help part-timers (and so help many females). This will lead to higher pensions and improve gender pension gaps.
1️⃣ From 1 October 2024, more part-timers must be enrolled by employers into the National Employees’ Pension Insurance Systems (EPI).
2️⃣ Previously, only employers with 100+ employees had to enrol part-timers. From 1 October, employers with 50+ employees have to do this.
3️⃣ Part-timers working 20+ hours a week (and who meet other conditions), as well as all those working around 30+ hours (75%) a week, must be enrolled
4️⃣ The change will cost smaller employers more money, but the government has subsidies to cover costs (just like Hong Kong is doing for it’s forthcoming improvements – see our post from 2 weeks ago)
🎌 Over 1 million workers are expected to benefit. There will still be many part-timers who still won’t be eligible, and juggling family commitments, but all small changes help.
✔️ Employers could take this opportunity to ensure part-timers are included in company-sponsored arrangements.
🇯🇵 Contact us for more information. The guide below (see link in comments) from 🇯🇵 JAPAN PENSION SERVICE provides more information on the national systems.