Japan Health Insurance Association Announces 2026 Premium Rate AdjustmentsThe Japan Health Insurance Association (Kyokai Kenpo) has officially announced the health insurance premium rate adjustments for Fiscal Year Reiwa 8 (FY2026).

The new rates will take effect starting from March 2026 payroll (premiums paid in April).

Overall, health insurance rates will decrease in most regions, while long-term care insurance premiums will increase. Additionally, the Child and Childcare Support Contribution system has undergone structural adjustments.

For companies employing staff in Japan, these changes mean that certain employment cost structures will shift, making it necessary to update payroll and social insurance calculations accordingly.

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1. 2026 Health Insurance Premium Rate Adjustments

According to the data released by Kyokai Kenpo:

• 40 prefectures will see premium rate decreases
• 7 prefectures will maintain their current rates
• No prefectures will experience an increase

The exact rates should be confirmed based on the official “FY2026 Insurance Premium Rate Table (令和8年度保険料額表)” published by Kyokai Kenpo.

For example, in Tokyo, where many companies are concentrated:

• Health insurance rate: 9.85%
• Previous rate: 9.91% (slightly reduced)

The premium is shared equally between employer and employee:

• Employer contribution: 4.925%
• Employee contribution: 4.925%
• Total: 9.85%

Although the decrease is relatively small, companies with larger workforces may still experience noticeable cost changes.

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2. Long-Term Care Insurance Premium Increase

Unlike health insurance, the long-term care insurance premium will increase in FY2026.

The nationwide unified rate will be adjusted to:

1.62% (previously 1.59%)

This cost is also shared equally between employer and employee:

• Employer contribution: 0.81%
• Employee contribution: 0.81%
• Total: 1.62%

Long-term care insurance primarily applies to employees aged 40 and above, so companies should pay special attention when calculating payroll for this group.

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3. Adjustment to the Child and Childcare Support Contribution

One of the more significant changes involves the Child and Childcare Support Contribution (子育て拠出金).

Previously:

• 0.36% fully borne by the employer

After the adjustment:

• Employer contribution: 0.115%
• Employee contribution: 0.115%
• Total: 0.23%

The overall rate decreases, while the cost structure shifts from employer-only contribution to shared contributions between employer and employee.

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4. Effective Dates of the New Rates

Companies should pay close attention to the applicable timelines when implementing the new rates.

Salaries (Regular Payroll)

Health insurance:

• Applies to March 2026 payroll (paid in April)

Long-term care insurance:

• Applies to March 2026 payroll (paid in April)

Child and childcare support contribution:

• Applies to April 2026 payroll (paid in May)

Bonuses

Health insurance:

• Applies to bonuses paid on or after March 1, 2026

Long-term care insurance:

• Applies to bonuses paid on or after March 1, 2026

Child and childcare support contribution:

• Applies to bonuses paid on or after April 1, 2026

When issuing bonuses or adjusting salaries, companies must apply the correct rates based on these timelines.

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5. Employment Insurance Rates Expected to Decrease

In addition to the above adjustments, market expectations indicate that:

Japan’s employment insurance premium rate may decrease in FY2026.

However, the final rate is still pending official confirmation from the Japanese government.

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6. Three Key Points for Employers to Watch

For companies employing staff in Japan, the following areas require particular attention:

1️⃣ Update payroll and social insurance calculation rules

Ensure that March payroll and subsequent bonuses are calculated using the new rates.

2️⃣ Monitor regional rate differences

Health insurance rates are determined by prefecture, so variations may occur across different regions.

3️⃣ Reassess overall employment costs

Although health insurance rates have decreased, the increase in long-term care insurance and structural adjustments may still affect overall labor costs.

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7. SmartDeer Reminder

Japan’s social insurance system is complex, and premium rate adjustments often involve multiple components with different effective dates.

When handling payroll calculations, bonus payments, or employee onboarding, companies should closely track these rate changes to avoid calculation errors or compliance risks.

SmartDeer will continue to monitor updates to Japan’s social insurance policies and provide enterprises with timely regulatory insights and global workforce compliance support.

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