By The Japan News Editorial

There is great significance in improving the foundation of the quality of life in old age for part-timers and other non-regular workers. Laws related to pension system reform have been passed.

The range of people eligible for employee pensions will be expanded to include short-term workers from companies with fewer employees.

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Currently, companies are required to join the employee pension program if they meet the requirements, such as having “501 or more employees.”The program will be expanded to include “101 or more” in October 2022 and “51 or more” in October 2024. This is expected to add a total of about 650,000 new members to the program.

The pension system is a two-tiered scheme comprising the national pension program for which all people are eligible, and the employee pension program for which salaried workers are eligible. Many non-regular workers are not eligible for the employee pension, and they can only receive benefits from the national pension in their old age. These benefits are a maximum of about ¥65,000 a month.

Non-regular workers account for about 40% of the workforce. Many people, including those who faced an era in which it was difficult to secure regular employment, are worried about their future. It is important to steadily implement the reforms to prevent impoverishment.

Expanding eligibility for the program in stages in consideration of companies that have to pay half of their premiums can be said to be a realistic decision. A special provision has also been established to allow companies heavily affected by the novel coronavirus to postpone the payment of the premiums by one year. The government should make efforts to make this known throughout the country.

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