What changes
A family member can be a dependant in an employee's health insurance, with no extra premium, if their annual income is below 1.3 million yen (1.8 million yen for those aged 60 and over or disabled, and 1.5 million yen for those aged 19 to 22 other than a spouse), and below half of the employee's income if they live together. Until now insurers judged expected income from recent actual earnings, so overtime or a busy season could push a part-timer over the line.
Under a Ministry of Health, Labour and Welfare notice of 1 October 2025, for recognitions dated 1 April 2026 or later the expected annual income is calculated from the hourly wage, scheduled hours and scheduled days in the employment contract or written working conditions. Overtime pay that is not set out in the contract is generally left out. If income later exceeds the limit because of such temporary earnings, within what is socially reasonable, the insurer does not need to cancel dependant status. It can do so if actual earnings far exceed the contract and the contract appears to have been set artificially low.
The method applies where the person's only income is employment income. Anyone with pension or business income is still assessed the old way.
Who it applies to
Employees with a working spouse or family member as a dependant, and employers of part-timers who are dependants of someone else.
Action for employers
- Issue clear written working conditions. Part-timers will need a contract or notice showing hourly pay, hours and days; make sure yours are accurate and current.
- Expect requests for documents. Staff claiming a dependant may be asked by the insurer for the dependant's working conditions notice.
- Rethink hours caps. Part-timers who limit overtime in December to stay under 1.3 million yen have less reason to; plan rosters accordingly.
- Keep contracts honest. Setting contracted hours low while scheduling routine overtime invites a later cancellation.
Sources
- Ministry of Health, Labour and Welfare, notice on annual income in dependant recognition where income under the employment contract is below the threshold (1 October 2025), and the accompanying Q&A.
- Japan Pension Service, notice on the treatment of annual income in dependant recognition based on employment contracts (December 2025).