The ¥1.06 Million Wall Is Being Abolished — Social Insurance from October 2026
The "¥1.06 million wall" around social-insurance enrollment for part-time and casual workers. This wage requirement is set to be abolished from October 2026. We organize what changes and how it affects both companies and the workers themselves.
- What the "¥1.06 million wall" was
- What changes when the wage requirement is abolished
- The phased removal of the company-size requirement
- The impact on companies and on employees
01What the "¥1.06 million wall" was
One requirement for short-time workers to enroll in social insurance (employees' pension and health insurance) was a wage requirement of "monthly wages of ¥88,000 or more (roughly ¥1.06 million a year)". This is the so-called "¥1.06 million wall".
Because crossing this wall creates a social-insurance premium burden, it has been seen as one cause of workers holding back their hours.
02What changes when the wage requirement is abolished?
From October 2026, this ¥88,000 monthly wage requirement is set to be abolished. As a result, enrollment eligibility will be judged not by the level of wages but by other requirements such as working hours.
03The company-size requirement is also being removed in stages
The expansion of social-insurance coverage is also progressively lowering and removing the company-size requirement (number of employees) for eligibility. Small workplaces previously out of scope will be included in turn.
04The impact on companies and on employees
| Party | Main impact |
|---|---|
| Company | The employer's share of premiums rises; identifying eligible staff and handling procedures is needed |
| Employee | Take-home pay falls temporarily, but coverage such as future pension and injury/sickness allowance grows |
For employees, there is not only a higher burden but also fuller coverage. Careful explanation from the company helps build a workplace where people feel it makes sense.
Summary
From October 2026, the "¥1.06 million wall" (the wage requirement) is set to be abolished.
Because eligibility is judged by working hours and the like rather than wages, more people become eligible.
Companies should prepare for higher premiums and procedures; explain the fuller-coverage side to employees.
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Sources & References
This article is based on information available at the time of publication. Rules and systems may change. Please consult a professional before making any individual decisions.
