In October 2026, two rules that shape how part-timers and casual workers work will change at the same time. One is the annual raise of the minimum wage (which usually takes effect in October; this year's benchmark recommendation was settled on July 28 at a national weighted average of ¥1,176, up ¥55). The other is the abolition of the "¥1.06 million wall" (effective October 1, confirmed). Hourly pay rises, yet the dividing line for social insurance shifts from "income" to "weekly working hours" — if you think about these two separately, you will get your post-October working style wrong. This article organizes them together, and lets you check your own case with a simulator where you just enter your hourly wage and weekly hours.
・The minimum wage is currently a national weighted average of ¥1,121 (the highest is Tokyo at ¥1,226; even the lowest is ¥1,023). The FY2026 benchmark is ¥1,176 (+¥55), with new amounts expected around October
・From October 1, the ¥1.06 million wall (the wage requirement of ¥88,000 a month) is abolished. At companies with 51 or more employees, "20 hours a week" becomes the dividing line for social insurance
・The ¥1.30 million wall (dependent status) remains. The more your hourly wage rises, the shorter the hours needed to reach the same annual income — thinking in terms of "how many hours a week you work" rather than "annual income" is the new common sense from October
Change ①: The minimum wage is set to rise again this October
Every year, around July the national council (the Central Minimum Wage Council) recommends a "benchmark" for the raise, and after deliberation in each prefecture, the new amounts take effect around October. Here is the current situation[MHLW Central Minimum Wage Council (in Japanese)].
| Current (FY2025) national weighted average | ¥1,121 (a rise of ¥66 from the previous year — the largest ever) |
| Current highest and lowest | Highest: Tokyo ¥1,226 / Lowest: Kochi, Miyazaki, and Okinawa ¥1,023 |
| FY2026 benchmark recommendation | Settled on July 28: national weighted average ¥1,176 (+¥55, +4.9%). Rank benchmarks are ¥54 for rank A and ¥56 for ranks B and C, with regional raises outpacing the big cities. Prefectural deliberations in August finalize the amounts, effective around October |
| When the new wages take effect | If as in past years, early to mid-October (varies by prefecture) |
The key point is that everywhere in the country the minimum wage already exceeds ¥1,000. This connects directly to the next topic, the "abolition of the ¥1.06 million wall."
Change ②: The ¥1.06 million wall disappears, replaced by the "20-hours-a-week wall" (October 1, confirmed)
Among the conditions for a part-timer to join their workplace's social insurance (employees' pension and health insurance), the requirement of "monthly wages of ¥88,000 or more (about ¥1.06 million a year)" will be abolished on October 1, 2026. After the abolition, there are only the following four conditions for enrollment[Ministry of Health, Labour and Welfare (in Japanese)].
- Prescribed weekly working hours of 20 hours or more
- An expected period of employment exceeding two months
- Not a student
- A company with 51 or more employees (this requirement, too, is scheduled to be phased out from October 2027)
In other words, from October it is decided by "whether you work 20 hours a week or more," regardless of how much you earn. The detailed background of the system is explained in The ¥1.06 million and ¥1.30 million walls.
If you work exactly 20 hours a week, monthly income is "hourly wage × about 87 hours." You reach ¥88,000 a month when the hourly wage is ¥1,016 or more. Now the minimum wage is ¥1,023 even at the national lowest — so if you work 20 hours a week, in every prefecture you automatically exceed ¥88,000 a month, and the wage requirement had effectively lost its meaning. The abolition, which had been described as "to be carried out in light of the minimum-wage situation," came this year because this arithmetic now holds nationwide.
Which pattern are you? The four categories from October
| Size of your workplace | 20 hours a week or more | Under 20 hours a week |
|---|---|---|
| 51 or more employees | Enroll in social insurance (regardless of annual income; students excluded) | No enrollment. Dependent status is judged by the ¥1.30 million wall |
| 50 or fewer employees | No enrollment for now※. Dependent status is judged by the ¥1.30 million wall | No enrollment. Dependent status is judged by the ¥1.30 million wall |
※Companies with 50 or fewer employees will also be phased into coverage from October 2027, and all companies are scheduled to be covered by 2035. There is also voluntary application by labor-management agreement (a voluntarily designated applicable establishment).
And what is easy to overlook is that the rise in hourly wages shortens the distance to the ¥1.30 million wall. The weekly working hours that reach ¥1.30 million a year are "¥1.30 million ÷ 52 weeks ÷ hourly wage." At ¥1,023 an hour it is 24.4 hours a week, but at Tokyo's ¥1,226 it is 20.4 hours a week — in urban areas the "¥1.30 million wall" and the "20-hours-a-week wall" line up in almost the same place.
¥1,023/hour → 24.4 hours a week / ¥1,121/hour → 22.3 hours a week / ¥1,226/hour → 20.4 hours a week
The higher the hourly wage, the shorter the hours you can stay "within dependent status." If you keep the same shifts as last year, a wage revision could push you over ¥1.30 million without noticing.
[Simulator] Just enter your hourly wage and weekly hours: you, from October
Enter your hourly wage, weekly working hours, and the size of your workplace, and it estimates your social insurance treatment from October onward and a guide to your annual income and take-home pay. Once the October wage revision is decided, enter the new hourly wage and check again.
※Annual income = a rough estimate of hourly wage × weekly hours × 52 weeks (excluding bonuses and commuting allowance). Social insurance premiums are estimated as about 15% of pay for the employee's own share. The actual judgment depends on your prescribed working hours and contract terms. You can also estimate in more detail with the Dependent-status wall simulator.
How to think so you don't lose out on take-home pay
- If you are hesitating just short of 20 hours a week: joining social insurance temporarily lowers your take-home pay through premiums (about 15% of pay), but the employees' pension increases your future pension, and you also gain injury-and-sickness allowance and maternity allowance. Premiums are split evenly with the company.
- The crossover line is around ¥1.5–1.6 million of annual income: rather than holding back halfway, if you work up to there your take-home pay exceeds what it was before enrolling. At ¥1,121 an hour, that is around 26 hours a week.
- Stop "building your shifts around annual income": from October the dividing line is hours. The conventional adjustment of hastily cutting shifts at year-end loses its meaning at companies with 51 or more employees.
- If you want to stay within dependent status at a company with 50 or fewer employees: after a wage revision, recalculate your weekly maximum hours with "¥1.30 million ÷ 52 ÷ new hourly wage." From April 2026 the judgment is based on the labor contract, so consulting your workplace about revising your contracted hours is the quickest route (Conditions for health-insurance dependent status).
FAQ
From October 2026, is there any point in adjusting your work so as not to exceed ¥1.06 million a year?
No. On October 1 the wage requirement of ¥88,000 a month (about ¥1.06 million a year) is abolished, and at companies with 51 or more employees, enrollment in social insurance is decided by "whether you work 20 hours a week or more," regardless of the amount you earn. Think in terms of weekly working hours, not income.
How much will the 2026 minimum wage be?
The FY2026 benchmark recommendation was settled on July 28 at a national weighted average of ¥1,176 (+¥55, 4.9%). Rank benchmarks are ¥54 for rank A and ¥56 for ranks B and C. Prefectural amounts will be finalized through deliberations in August and, as in past years, take effect in early to mid-October.
Will the ¥1.30 million wall disappear?
It remains. Only the wage requirement (¥1.06 million) among the social-insurance enrollment conditions is abolished; the ¥1.30 million threshold for leaving dependent status does not change for now. If anything, when the hourly wage rises you reach ¥1.30 million more easily even at the same hours, so for people working within dependent status it is safest to recalculate the weekly maximum hours each time the wage is revised.
Will student part-timers also have to join social insurance from October?
Daytime students are exempt from application, so even if they work 20 hours a week or more, in principle they do not join their workplace's social insurance. However, the income threshold for a parent's dependent (health insurance) — under ¥1.5 million a year for those aged 19 to under 23 — remains as a separate rule, so you still need to be careful about earning too much.
I work at a company with 50 or fewer employees. Does anything change?
As of October 2026 there is no expansion of who must enroll, but you are still affected by the raise in hourly wages shortening the hours at which you reach the ¥1.30 million wall. Also, the company-size requirement is phased out from October 2027, and all companies are scheduled to be covered by 2035.
Sources: Ministry of Health, Labour and Welfare — Central Minimum Wage Council (in Japanese) / Ministry of Health, Labour and Welfare — On expanding who is covered by social insurance (in Japanese) / Japan Pension Service — Expansion of application to short-time workers (in Japanese), and various news reports (as of July 2026). We will update the FY2026 minimum wage after the recommendation and its entry into effect. This article is general information; for individual judgments, please confirm with your workplace, a pension office, or a professional.