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‘Income ceiling’ holding Japan’s part-time employees again

TOKYO, Sep 27 (News On Japan) –
Part-time staff in Japan are limiting their working hours to keep away from the burden of social insurance coverage premiums, creating an revenue ceiling past which they’re unwilling to work.

Many companies in Japan that depend on part-time employees corresponding to supermarkets are at the moment going through a severe scarcity of employees, with the “¥1.3 million income ceiling” being a big issue behind this.

When the annual revenue of a employee who’s financially depending on their partner exceeds ¥1.3 million, they’re not coated by medical health insurance as a dependent member of the family. Instead, they must pay medical health insurance and pension premiums on their very own, which leads to further funds of about ¥300,000 yearly.

To keep away from crossing this ¥1.3 million revenue ceiling, there was a rise in part-time staff lowering their annual working hours.

To alleviate the problem, the federal government is contemplating permitting people to stay dependents for as much as two years, even when their annual revenue exceeds ¥1.3 million quickly.

However, consultants argue {that a} long-term resolution is important and that merely encouraging extra work for one 12 months won’t resolve the revenue ceiling subject.


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