The 1.3 million yen wall — can an employer's certification carry you through a temporary rise in income?

In short: Even if a part-timer's annual income temporarily exceeds 1.3 million yen, if the excess is due to a temporary circumstance such as overtime or a busy period, the employer can certify this and the person may keep their dependent status. This "smoothing of dependent certification through the employer's certification" is, in principle, available up to two consecutive years. However, it is the insurer (Kyokai Kenpo or a health insurance society), not the company, that ultimately decides whether to recognize a person as a dependent. All the company can do is correctly certify a temporary circumstance.

"This year we were short-handed, our part-timer kept working overtime, and before we knew it her annual income was about to pass 1.3 million yen. Does she lose her dependent status?" — questions like this are increasing in short-handed workplaces. This article, for the business owners and HR staff who manage the dependent status of part-time employees, sets out how a temporary rise past the 1.3 million yen wall is treated, and where the company's role ends and the insurer's judgment begins.

How does the 1.3 million yen wall differ from the 1.06 million yen wall?

There are several "income walls," and they are easily confused. In particular, the 1.06 million yen and 1.3 million yen walls concern entirely different systems.

	1.06 million yen wall	1.3 million yen wall
What it is a standard for	Whether a short-time worker enrolls in social insurance at their own workplace (expansion of coverage)	The income standard for whether someone can be a dependent of a spouse etc.
Basis	Enrollment requirements under the Employees' Pension Insurance Act and the Health Insurance Act	Health Insurance Act, Article 3, Paragraph 7 (definition of a dependent) and the certification standard (income guideline)
Who decides	The person's own workplace	The insurer the insured person belongs to (Kyokai Kenpo or a health insurance society)
Nature of the figure	Monthly pay of 88,000 yen or more (the wage requirement is to be abolished in October 2026)	Expected annual income under 1.3 million yen (under 1.8 million yen for those aged 60+ or with certain disabilities)

The 1.06 million yen wall is about "whether the worker themselves enrolls in social insurance at their workplace," and its wage requirement is expected to be abolished in October 2026. For details, see what a business owner should do when the 1.06 million yen wall is abolished. By contrast, the 1.3 million yen wall discussed here is about "whether someone can become a dependent of a spouse or the like" — a separate system from the 1.06 million yen wall. Even if the 1.06 million yen wall goes, the 1.3 million yen dependent standard does not.

Note that the figure of 1.3 million yen itself is not written as a number in the Health Insurance Act. The statute (Article 3, Paragraph 7) defines a dependent as "a relative within a certain range whose livelihood is chiefly maintained by the insured person and who has an address in Japan," and "under 1.3 million yen" is a certification standard shown as a guideline for maintenance of livelihood. Precisely for this reason, it is not a mechanical "exceed 1.3 million yen and you are out immediately"; there is room for a judgment grounded in the actual situation.

When income temporarily exceeds it, can certification continue through the employer?

It can, in some cases. As one of the measures in the so-called "income-wall support-strengthening package," the government established a treatment called "smoothing of dependent certification through the employer's certification." Even if income rises temporarily due to overtime caused by a labor shortage and expected annual income exceeds the equivalent of 1.3 million yen, if the employer certifies that the excess is temporary, the person may keep their dependent status.

The following are examples envisaged as "temporary circumstances."

• Another employee left or took leave, so that person's workload increased
• The workplace was in a busy period and workload increased
• A sudden large order came in and workload temporarily increased

This treatment began in October 2023 (Reiwa 5) as a "provisional measure," but shifted to a permanent treatment in October 2025 (Reiwa 7). As it is no longer a time-limited measure, it can be used at each annual income check.

Care is needed, however. A permanent rise in income (a permanent increase in the hourly wage, a contract change to continuously increase working days, and so on) does not count as "temporary." This treatment is only for cases where "income rose this year for a special reason but is expected to return to normal next year." If income permanently exceeds 1.3 million yen, the direction is essentially to leave the dependent status and enroll in social insurance on one's own (or at one's workplace).

What to watch out for in the number of certifications and how to write them?

Here are the key points when using the employer's certification.

Item	Content
Guideline on frequency	In principle, up to two consecutive years (income checks in two consecutive years). Using it for three years in a row is not envisaged
Who writes it	Not the dependent themselves, but the employer who employs that person certifies that the rise in income is temporary
What to write	That the reason for the rise in income (another employee's departure, a busy period, a large order, etc.) is temporary
Where to submit	The insurer (Kyokai Kenpo or a health insurance society) the insured person (the one providing support) belongs to. The company submits it to the insurer
Treatment of a permanent increase	It cannot be used for a rise in income that is not temporary. If it is expected to continue in later years, dependent status cannot continue

The certification "certifies a fact"; it does not "promise certification." Note that writing it does not necessarily mean certification will continue.

In addition, from April 2026, a treatment was set out for judging dependent certification based on expected annual income drawn from the content of the labor contract (such as the written notice of working conditions). As there will be more occasions to confirm expected annual income from the contractual working hours and pay, putting the written notice of working conditions in order becomes more important than ever. For the disclosure of working conditions, see also what must be disclosed for part-time and fixed-term employment from October 2026.

In the end, who certifies — the company or the insurer?

The insurer. This is the point most easily misunderstood.

What the company (employer) can do is certify that "the rise in income is temporary," and no further. Taking that certification into account, it is the insurer the insured person belongs to (Kyokai Kenpo or a health insurance society) that decides whether to actually recognize the person as a dependent. Depending on the health insurance society, there may be its own practice or additional documents.

Accordingly, even when an employee asks "can I keep my dependent status?", the company cannot declare "yes, you can." All it can say is "we can certify a temporary circumstance; whether it is recognized is the insurer's decision." Getting this wrong leads to trouble later if certification is not granted.

The flow a company confirms in practice is as follows.

1. Judge whether it is a temporary circumstance: overtime, a busy period, covering for a vacancy — is it expected to return to normal next year? A permanent increase is outside the scope of certification.
2. Check the frequency: has certification already been used in the previous year (the guideline being up to two consecutive years)?
3. Check the insurer's form and deadline: the form and required documents differ between Kyokai Kenpo and a health insurance society. Confirm through the insured person.
4. Leave the decision to the insurer: the company goes as far as certification. Whether to certify is decided by the insurer.

For the basics of social-insurance enrollment decisions, see what happens to social insurance when you hire someone for short hours; for the idea of the standard monthly remuneration, see how the standard-remuneration base notification and the monthly-change notification differ.

Frequently asked questions

Q. If we submit the employer's certification, can the person definitely stay a dependent?
A. No. The employer's certification certifies that "the rise in income is temporary"; it does not promise certification. The one that ultimately decides whether to recognize a person as a dependent is the insurer the insured person belongs to (Kyokai Kenpo or a health insurance society). What the company can do goes as far as certification.

Q. Can the employer's certification be used for any number of years?
A. No. This treatment is for a rise in income due to a "temporary circumstance," and the guideline is, in principle, up to two consecutive years (income checks in two consecutive years). It cannot be used for a permanent rise in income, such as a permanent increase in the hourly wage or a contract change to continuously increase working days.

Q. If income exceeds 1.3 million yen by even one yen, does the person lose their dependent status at that point?
A. Not necessarily. The 1.3 million yen is not laid down as a number in the Health Insurance Act; it is a certification standard shown as a guideline for maintenance of livelihood. A temporary rise in income can be subject to the smoothing through the employer's certification. If it permanently exceeds the figure, however, the direction is to leave the dependent status and enroll in social insurance.

Q. Is a part-timer's dependent status the same thing as the spousal deduction for tax (1.03 million yen, etc.)?
A. It is a separate matter. The 1.3 million yen wall is the standard for health-insurance dependent certification (social insurance), while the spousal deduction and special spousal deduction (1.03 million yen, 1.5 million yen, etc.) are income-tax and local-tax standards; they are different systems. Tax matters are the domain of a tax accountant.

Sources

• Health Insurance Act, Article 3, Paragraph 7 (definition of a dependent). It defines a dependent as, among others, "a relative within a certain range whose livelihood is chiefly maintained by the insured person and who has an address in Japan." The figure "under 1.3 million yen (under 1.8 million yen for those aged 60+ or with certain disabilities)" is not a number in the statute but a guideline of income (a certification standard) for judging the maintenance-of-livelihood relationship (e-Gov Law Search, Health Insurance Act, Act No. 70 of 1922; accessed 26 August 2026).
• Smoothing of dependent certification through the employer's certification under the "income-wall support-strengthening package." Even if a temporary rise in income (increased workload due to another employee's departure or leave, a busy period, a sudden large order, etc.) causes expected annual income to exceed the equivalent of 1.3 million yen, dependent certification can continue if the employer certifies that it is temporary. It began as a provisional measure under a notice dated 20 October 2023 (Reiwa 5) (Hoho-hatsu No. 1020-3) and shifted to a permanent treatment in October 2025 (Reiwa 7). The guideline is, in principle, up to two consecutive years (income checks in two consecutive years) (Ministry of Health, Labour and Welfare, "Response to the income wall"; accessed 26 August 2026).
• Dependent certification based on the labor-contract content from April 2026. A treatment has been set out for judging certification based on expected annual income drawn from the content of the labor contract, such as the written notice of working conditions (information published by the Ministry of Health, Labour and Welfare and the Japan Pension Service; accessed 26 August 2026).
• Dependent certification is ultimately made by the insurer the insured person belongs to (Kyokai Kenpo or a health insurance society). Depending on the health insurance society there may be its own practice and additional documents. Please confirm the specific form and deadline in each insurer's guidance (guidance on dependent certification from Kyokai Kenpo and each health insurance society; accessed 26 August 2026).

This article does not decide whom to consult. Preparing the employer's certification for dependent certification and social-insurance procedures are the work of a Shakai Hoken Roumushi. Tax matters (such as the spousal deduction) are the domain of a tax accountant. For fees when consulting 四葉社会保険労務士事務所, see the fee schedule; for frequently asked questions, see the FAQ.

This article is general information. Whether an individual is certified as a dependent is decided by the insurer. Whether the system applies and individual procedures are handled by a qualified professional after a consultation, in light of the latest primary sources (the Ministry of Health, Labour and Welfare, the Japan Pension Service, each insurer, etc.) and individual circumstances. Written by Joji Uramatsu (Shakai Hoken Roumushi, Gyoseishoshi, Registered Real Estate Transaction Specialist).