Interim revision (Monthly Amount Change Notification): file when the grade differs by 2 or more levels 3 months after a change in fixed wagesIf your hourly pay goes up, your social insurance "bracket" may be reviewed too
When fixed wages change (a raise or a cut, for example) and the standard monthly remuneration calculated from the average pay of the three months from the month of change differs from the previous one by 2 or more grades, the standard monthly remuneration is revised from the 4th month after the first month in which the changed pay was received, without waiting for the regular determination. The employer must promptly file the Monthly Amount Change Notification.
- 1. Confirm the changeDid fixed wages change?
- 2. Total 3 monthsPay and payment base days for the 3 months from the month of change
- 3. Compare gradesDoes the 3-month average differ from the previous standard monthly remuneration by 2 or more grades?
- 4. File the notificationIf the requirements are met, promptly file the Monthly Amount Change Notification
Key points
- All three requirements must be met: (1) a change in fixed wages; (2) the standard monthly remuneration based on the average pay of the three consecutive months from the month of change differs from the previous one by 2 or more grades; (3) the number of payment base days is 17 or more in each of the three months (11 or more for short-time workers at specified applicable offices).
- Examples of changes in fixed wages: raises and cuts, changes to the pay structure, changes to daily or hourly rates, and changes to fixed allowances. Pay during a leave of absence is excluded.
- If a change in non-fixed wages such as overtime pay works in the opposite direction to the change in fixed wages and the result is a difference of less than 2 grades, the case is not covered. A grade change that crosses the upper or lower limit is covered even if it is only a 1-grade difference.
- The revision takes effect from the 4th month. For example, a change in April leads to a revision from July. A revision made up to June applies until August of the same year; a revision made from July applies until August of the following year.
What to do in practice
- For employees whose fixed wages changed, total the pay and payment base days for the three months from the month of change and compare the result with the previous standard monthly remuneration.
- If the requirements are met, promptly submit the Notification of Change in Monthly Remuneration of Insured Persons to the Business Center or the competent pension office (by electronic filing, mail, or in person).
Social insurance premiums are set by sorting pay into several brackets. When the way your pay is decided changes, such as a higher hourly or monthly rate, three months later the bracket is checked to see whether it has moved a lot, and it is revised if needed.
- ○Applies: The hourly rate went up, and the 3-month average moved the bracket by 2 or more steps
- ○Applies: The monthly salary went up, and the 3-month average moved the bracket by 2 or more steps
- ×Does not apply: The pay received during a leave of absence changed
- ×Does not apply: Monthly pay and hourly pay did not change, there was just more overtime than usual
Points
- The trigger is a change in the hourly rate or monthly salary itself.
- The pay of the three months after the change is averaged, and if the bracket has moved by 2 or more steps, it is revised.
- Just working more overtime is not a trigger.
What the words mean
- Standard monthly remuneration
- Pay fitted into a rough amount bracket so that premiums can be calculated.
- Fixed wages
- The part of pay that is more or less set every month, such as monthly salary or the hourly rate.
- Japan Pension Service: Japan Pension Service: Interim revision of standard monthly remuneration (Monthly Amount Change Notification)
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.