Japan and Taiwan implement labor and social insurance policy changes

In Japan, the Ministry of Health, Labour and Welfare plans to abolish the wage requirement for social insurance enrollment, commonly known as the ‘1.06 million yen wall,’ in October 2026. This change follows the rise of regional minimum wages to over 1,016 yen per hour across all prefectures, which effectively makes the previous wage threshold redundant for those working 20 or more hours per week. Additionally, the requirement regarding company size will be phased in, reducing the employee threshold from 51 to 36 in October 2027, eventually reaching companies with 10 or fewer employees by 2035.

In Taiwan, the Ministry of Labor has announced an extension of employment stability measures for nine specific industries through the end of October. This extension aims to mitigate the impact of a 10% tariff adjustment between Taiwan and the United States. Eligible workers in sectors such as food manufacturing, textiles, rubber, plastics, metal products, and automotive parts can receive subsidies covering up to 70% of their wage difference if they agree to reduced working hours. The program seeks to stabilize employment as various industries navigate uneven recovery speeds.