In-service old-age pension: suspension threshold raised from JPY 510,000 to JPY 650,000 a month (April 2026, Reiwa 8)The line where your pension starts to shrink while you work has moved up
Under the 2025 (Reiwa 7) pension reform law, from April 2026 (Reiwa 8) the threshold that decides whether the old-age employees' pension is suspended under the in-service old-age pension has been raised from JPY 510,000 to JPY 650,000 a month. If the basic monthly amount plus the total remuneration monthly equivalent is JPY 650,000 or less, the pension is paid in full.
Key points
- It applies to people aged 60 or older who receive an old-age employees' pension while still enrolled in employees' pension insurance. The old-age basic pension is not subject to the adjustment.
- When the threshold is exceeded, the formula is: basic monthly amount - (basic monthly amount + total remuneration monthly equivalent - JPY 650,000) / 2. Before the revision the JPY 650,000 figure was JPY 510,000.
- The basic monthly amount is the annual old-age employees' pension (the earnings-related portion, excluding the supplementary benefit) divided by 12. The total remuneration monthly equivalent is the standard monthly remuneration plus one twelfth of the standard bonus amounts for the past year.
- The threshold is revised every fiscal year. JPY 650,000 is the figure for fiscal 2026 (Reiwa 8) and will be reviewed in line with changes in wages.
What to do in practice
- For employees who stay on after age 60, check whether the basic monthly amount plus the total remuneration monthly equivalent exceeds JPY 650,000.
- Advise employees to confirm their individual payment amounts with the Japan Pension Service or a pension office.
If you keep working after 60 and also receive a pension, part of the pension stops when your pay plus pension goes over a certain line. From April 2026, that line moved up from JPY 510,000 to JPY 650,000.
- Pension (monthly)
- JPY 100,000
- + Pay etc. (monthly)
- JPY 460,000
- Total (is it JPY 650,000 or less?)
- JPY 560,000
- Pension actually paid
- JPY 100,000 (in full)
Points
- If your monthly pay plus pension is JPY 650,000 or less, your pension is not stopped.
- Only when you go over JPY 650,000 does the pension get smaller, by roughly half of the amount over the line.
- This rule only concerns the company pension part (employees' pension).
What the words mean
- Old-age employees' pension
- A pension for people who worked at a company and have grown older.
- Suspension of payment
- When part of the pension you should get is stopped for the time being.
- Japan Pension Service: Japan Pension Service: The in-service old-age pension system has been revised
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.