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Japan Issued Employees' Pension Insurance Rate of Reiwa Fifth

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Japan Issued Employees' Pension Insurance Rate of Reiwa Fifth

On August 3rd, 2017, the Ministry of Health, Labor and Welfare of Japan announced a notice on the end of increasement of the premium rate of pension annuity which will be fixed at 18.3% after the last round of increasement in September. The notice pointed out that in view of the rapidly declining birth rate and increasing aging population, in order to balance the pension benefits and the burden of contemporary labor groups, since the revision of the pension system in Heisei 16(2004), the welfare pension insurance rate has increased by 0.354% per year. Combined with the national treasure burden structure of 50% of the basic pension (national annual), the pension system has completed the preliminary financial framework. In the future, the pension system will be operated with a long-term perspective on the basis of ensuring the level of pension benefits.

Until 2023, the Ministry of Health, Labor and Welfare has not issued a new round of adjustment notice. The annual premium rates in recent years are:

Year	2017	2018	2019	2020	2021	2022	2023
Premium rates	18.300%	18.300%	18.300%	18.300%	18.300%	18.300%	18.300%

On April 1, 2023, the Japan Pension Agency issued a “Table of Welfare Pension Insurance Premiums from September 2020(Reiwa 5th Annual Version)”, which records monthly insurance premium paid by general insured person, pit workers (staff in coal mines and mines ) and crew members with different incomes for public reference. In addition, the table states:

From September 29, 2010, the insurance premium rates for general insured person, pit workers and crew members will remain the same.
When decimal places in the calculation of the insurance premium appear, if the employers withhold and pay the insurance premium from the employees’ salary, it will be rounded off if it does not exceed 0.5 yen and it will be regarded as 1 yen if it is more than 0.5 yen (including 0.5 yen). If there is a special agreement between the employers and the employees regarding the treatment of decimal places, it can be implemented in accordance with the agreement.
The insurance premium recorded in the payment notification is the total amount of insurance premiums for all insured employees. If the total amount has a decimal place less than 1 yen, the decimal place is rounded off.
The insurance premium for bonuses is calculated by multiplying the standard bonus amount after deducting the portion of the bonus amount less than 1,000 yen by the insurance rate. In addition, there is an upper limit on the amount of the standard bonus, and the upper limit of the Welfare Pension Insurance and child rearing contributions is 1.5 million yen per month.
Employers must bear the full amount of the child-rearing contributions used to pay child allowances and so on. The childcare contribution is calculated based on the standard monthly remuneration and standard bonus monthly of all insured persons multiplied by the contribution rate.

The insurance premiums for general insured persons with different incomes, pit workers and crew members in 2023 is as follows:

Monthly Salary	Stand Salary		Pension Insurance Premium
From ~ To	Grade	Amount	Full contribution 18.300%	Half contribution 9.150%
~ 93,000	1	88,000	16,104	8,052
93,000 ~ 101,000	2	98,000	17,934	8,967
101,000 ~ 107,000	3	104,000	19,032	9,516
107,000 ~ 114,000	4	110,000	20,130	10,065
114,000 ~ 122,000	5	118,000	21,594	10,797
122,000 ~ 130,000	6	126,000	23,058	11,529
130,000 ~ 138,000	7	134,000	24,522	12,261
138,000 ~ 146,000	8	142,000	25,986	12,993
146,000 ~ 155,000	9	150,000	27,450	13,725
155,000 ~ 165,000	10	160,000	29,280	14,640
165,000 ~ 175,000	11	170,000	31,110	15,555
175,000 ~ 185,000	12	180,000	32,940	16,470
185,000 ~ 195,000	13	190,000	34,770	17,385
195,000 ~ 210,000	14	200,000	36,600	18,300
210,000 ~ 230,000	15	220,000	40,260	20,130
230,000 ~ 250,000	16	240,000	43,920	21,960
250,000 ~ 270,000	17	260,000	47,580	23,790
270,000 ~ 290,000	18	280,000	51,240	25,620
290,000 ~ 310,000	19	300,000	54,900	27,450
310,000 ~ 330,000	20	320,000	58,560	29,280
330,000 ~ 350,000	21	340,000	62,220	31,110
350,000 ~ 370,000	22	360,000	65,880	32,940
370,000 ~ 395,000	23	380,000	69,540	34,770
395,000 ~ 425,000	24	410,000	75,030	37,515
425,000 ~ 455,000	25	440,000	80,520	40,260
455,000 ~ 485,000	26	470,000	86,010	43,005
485,000 ~ 515,000	27	500,000	91,500	45,750
515,000 ~ 545,000	28	530,000	96,990	48,495
545,000 ~ 575,000	29	560,000	102,480	51,240
575,000 ~ 605,000	30	590,000	107,970	53,985
605,000 ~ 635,000	31	620,000	113,460	56,730
635,000 ~	32	650,000	118,950	59,475

（Unit: Yen）

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Japan Issued Employees' Pension Insurance Rate of Reiwa Fifth

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