The Ministry of Health, Labor and Welfare has so far helped over 140,000 people overcome the so-called annual income barrier by using subsidies for companies that work to ensure that their take-home pay does not decrease even if they work beyond the annual income barrier. announced that they are expected to enroll in social insurance.
The ``annual income wall'' is a phenomenon in which when a part-time worker exceeds a certain annual income, he or she is no longer supported by his or her spouse and has to pay social insurance premiums, which reduces his or her take-home pay. It has been pointed out that the efforts to keep working hours in check are leading to labor shortages.
As a countermeasure, the government will provide up to 500,000 yen per employee to companies that last year established allowances to supplement insurance premiums to prevent their take-home income from decreasing even if they exceed the ``annual income barrier'' of 1.06 million yen. A subsidy system has been established.
The Ministry of Health, Labor and Welfare announced that by the end of January, 3,749 businesses nationwide had submitted plans to utilize this subsidy.
As a result, more than 144,000 people are expected to cross the ``wall'' and enroll in social insurance such as employees' pensions by the end of fiscal 2025.
The Ministry of Health, Labor and Welfare estimates that there are approximately 600,000 people who may be aware of the ``1,060,000 yen barrier,'' and is working to further disseminate the system by introducing examples of how subsidies are used. I am planning to do so.