Japan considers reforms to Category 3 pension system

The Japanese Ministry of Health, Labour and Welfare has initiated discussions to potentially scale back the ‘Category 3 insured person’ system. This system allows dependent spouses of salaried employees, typically homemakers, to receive pension benefits without paying individual insurance premiums.

Recent statistics from the Ministry show that the number of Category 3 insured persons has declined for five consecutive years, reaching approximately 6.41 million at the end of fiscal year 2024. This trend is driven by a rise in dual-income households. Critics have argued that the current system creates unfairness compared to working spouses who must pay premiums.

The upcoming deliberations by an expert committee will focus on how to balance these reforms with the needs of individuals who limit their working hours due to childcare or nursing care responsibilities.