Japan (JP)
Japan is one of the world's most captivating destinations for expats — a country where ancient temple culture and ultra-modern technology coexist seamlessly.
2026 Annual Changes — Japan
Updated thresholds, benefits, and regulatory changes effective this year.
Japan's 2026 policy year continues reforms to social security, pensions, and digital infrastructure. Key changes: national pension premium raised to ¥17,920/month (April 2026), Tokyo minimum wage at ¥1,226/hour (October 2025 rate; October 2026 revision pending), health insurance Tokyo rate cut to 9.85% (first reduction in 34 years), employment insurance reduced to 1.45% total, NHI medical cap raised to ¥670,000. Child allowance expansion (no income ceiling, extended to age 18) and iDeCo limit increases fully in effect.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage Tokyo minimum wage revised October 2025; next revision due October 2026. Government target: ¥1,500/hour nationwide by end of decade. | Tokyo: ¥1,226/hour (effective October 3, 2025). National weighted average: ¥1,121/hour (confirmed October 2025 — record +¥66 increase; all 47 prefectures now exceed ¥1,000/hr). 2026 October revision to be announced late summer 2026. | Tokyo ¥1,163/hour (October 2024); National average ¥1,004/hour (October 2024) | October 2025 (current); October 2026 revision pending |
| National Pension Premium (Kokumin Nenkin) FY2026 monthly premium raised using macroeconomic slide mechanism | ¥17,920/month (FY2026: April 2026–March 2027) | ¥17,510/month (FY2025) | April 2026 |
| Employee Pension (Kosei Nenkin) Contribution Rate Rate unchanged since stabilisation in 2017 | 18.3% of Standard Monthly Remuneration total. Employee: 9.15%. Employer: 9.15%. | 18.3% (unchanged since September 2017) | Ongoing |
| Health Insurance Premium (Kyokai Kenpo) — Tokyo Tokyo Kyokai Kenpo rate CUT for FY2026 — first reduction in 34 years | Tokyo health insurance rate: 9.85% total (4.925% employee + 4.925% employer). Long-term care (kaigo, age 40–64): additional 1.62% total (0.81% each). Combined health + kaigo for age 40–64: 11.47%. Verify prefectural rates at kyoukaikenpo.or.jp. | Tokyo: approximately 9.91% total (FY2025) | March 2026 payroll |
| Employment Insurance Premium Rate reduced for FY2026 | General employees: 1.45% total (employee 0.55% + employer 0.90%). Construction sector: higher employer rate applies. Verify at MHLW. | 1.55% total (employee 0.60% + employer 0.95%) — FY2025 | April 2026 |
| Shakai Hoken Coverage Expansion Expanded coverage to part-time workers at companies with 51+ employees (from October 2024) | Companies with 51+ employees and part-time workers with 20+ hours/week and expected employment 2+ months: mandatory Shakai Hoken enrollment. | 101 employees threshold (before October 2024) | October 2024 (now fully in force) |
| Child Allowance (児童手当) Expansion 2024 reform fully in effect: income ceiling removed, age extended to 18, third-child premium introduced | ¥15,000/month (under 3). ¥10,000/month (age 3–18). ¥30,000/month (third child under 18). No income ceiling. Paid quarterly. | Age limit 15; income ceiling applied above ¥9.6M household; ¥5,000 reduced amount for high earners | October 2024 (fully in force 2026) |
| Childbirth Grant (出産育児一時金) Birth lump-sum maintained at ¥500,000 (raised April 2023) | ¥500,000 per birth (applied directly to hospital or paid to claimant) | ¥420,000 (before April 2023) | April 2023 (in force 2026) |
| NHI Annual Premium Cap National Health Insurance annual premium ceiling raised for FY2026 | Medical component cap: ¥670,000/year (raised from ¥660,000). Late-elderly support component: ¥260,000/year. Long-term care component (age 40–64): ¥170,000/year. Combined maximum: ¥1,100,000/year. | Medical cap: ¥660,000/year | FY2026 |
| iDeCo Contribution Limit Limits increased from December 2024 to allow employees with company DC/DB plans to maximise pension savings | Employees with company DC (defined contribution): up to ¥55,000/month combined. Employees with DB (defined benefit) only: ¥23,000/month. Self-employed: ¥68,000/month. Civil servants: ¥20,000/month. | Lower limits for employees with DB plans (before December 2024) | December 2024 (in force 2026) |
| MyNumber Card — Health Insurance Integration Physical health insurance cards phased out; MyNumber card (マイナ保険証) replacing them | MyNumber card accepted at virtually all medical facilities. Transitional certificate (資格確認書) issued to those without MyNumber card. Old health insurance cards accepted through transition period. | Physical health insurance cards mandatory; MyNumber health card optional | December 2024 onwards (phased) |
| Invoice System (インボイス制度) Transitional deduction measure for unregistered freelancers changing in September 2026 | Registered freelancers must include T-number on invoices. Unregistered: clients cannot claim full consumption tax deduction. Transitional 80% deduction (for clients dealing with unregistered) ends September 2026; reduces to 50% deduction September 2026–September 2029. | 80% transitional deduction (first 3 years from October 2023) | September 2026 (transitional rate change) |
| Specified Skilled Worker (特定技能) Program SSW programme sectors and quotas expanded; Type 2 (PR pathway) available in 11 sectors | SSW Type 1: 16 eligible sectors (construction, manufacturing, food service, agriculture, hotel, nursing care, fishery, building cleaning, materials, industrial machinery, electronics, auto repair, aviation, shipbuilding, auto transport, and more). SSW Type 2 (PR pathway, no time limit): available in 11 sectors. | SSW Type 2 originally limited to 2 sectors | 2023–2025 expansions in force |
| Consumption Tax Rate No change — discussions about future increases ongoing | Standard rate: 10%. Reduced rate (軽減税率): 8% for food items (excluding dining-in and alcohol) and subscription newspapers. | Unchanged since October 2019 | Ongoing (no change in 2026) |
| Retirement Age Guidance Government continues to encourage companies to offer employment to age 70 (effort obligation since April 2021) | Standard mandatory retirement (定年) at major Japanese companies: typically 60 or 65. Reemployment contracts to age 65 widely offered. Extension to 70 increasingly common. | Effort obligation to 70 since April 2021 | Ongoing trend |
January Checklist
Actions to take each January when new rates take effect.
- 1
Review withholding tax summary (源泉徴収票) received from employer in January.
- 2
Plan Kakutei Shinkoku (確定申告) filing — required for self-employed, multiple income sources, or deductions; filing window February 16–March 15.
- 3
Check iDeCo statements and rebalance — annual statement arrives January–February.
- 4
Reset NISA annual contribution limit — plan the year's investments.
- 5
Update health insurance via ward office if income changed significantly (NHI recalculation March/April).
- 6
Check national pension premium change effective April 2026: ¥17,920/month.
- 7
Note Tokyo Kyokai Kenpo health rate cut to 9.85% effective March 2026 payroll.
- 8
Note employment insurance rate reduced to 1.45% total from April 2026.
- 9
Verify pension contribution months via Nenkin Net — check for gaps from employment transitions.
- 10
Check MyNumber card expiry — valid 10 years (5 years for under-20s).
- 11
If leaving Japan: begin pension lump-sum withdrawal planning; note 2-year deadline from departure.
- 12
Update address with ward office if moved (住民票 must reflect current address).
Where to Track Annual Changes
-
mhlw.go.jp (厚生労働省) — health insurance, pension, employment insurance, minimum wage
-
nenkin.go.jp (日本年金機構) — pension premiums and Nenkin Net
-
nta.go.jp (国税庁) — income tax, consumption tax, invoice system
-
fsa.go.jp (金融庁) — NISA, iDeCo rule changes
-
moj.go.jp/isa (出入国在留管理庁) — visa and residence rule changes
-
kyoukaikenpo.or.jp — Kyokai Kenpo health insurance rates by prefecture
-
digital.go.jp (デジタル庁) — MyNumber and e-government
Japan's Kyokai Kenpo health insurance rate cut for FY2026 (Tokyo: 9.85%) is the first nationwide health insurance rate reduction in 34 years — a significant change many online sources and expat guides still show the old higher rates for. Note that the NHI ¥920,000 cap cited in some sources is not an official figure; the correct medical component cap is ¥670,000 with a combined maximum of ¥1,100,000. Municipal tax (住民税) is assessed on previous year income and billed the following May–June — new arrivals often face a 12–18 month delay before the first bill.
Annual Changes
Unlock the complete Annual Changes guide for Japan — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere