Special Revision of Standard Monthly Remuneration for Significant Reductions in Pay Due to Leave of Absence Caused by COVID-19

The Japan Pension Service has updated its guidance to include individuals whose remuneration decreased sharply due to leave of absence caused by the impact of COVID-19 between August 2021 and December 2021 and individuals who have already received a special revision due to a significant decrease in remuneration caused by leave of absence between June 2020 and May 2021 as eligible for special measures.

✅ Regarding the Special Revision of Standard Monthly Remuneration

For individuals whose remuneration decreased significantly due to leave of absence caused by the impact of COVID-19 between April 2020 and July 2021, measures have been implemented allowing for a special revision starting from the following month, rather than the standard periodic revision (which takes effect in the fourth month), based on a notification from the employer.
Recently, it has been decided that special measures will also be applied to those whose remuneration decreased sharply due to leave of absence caused by the impact of COVID-19 between August 2021 and December 2021, as well as those who have already received a special revision due to a significant decrease in remuneration caused by leave of absence between June 2020 and May 2021.

(1) Special measures for those whose remuneration decreased significantly due to new leave of absence between August 2021 and December 2021
Individuals who meet all of the following criteria (A through C) are eligible:
A. Individuals who had a month with a significant decrease in remuneration between August 2021 and December 2021 due to leave of absence caused by the impact of COVID-19.
B. Individuals whose total remuneration (for one month) paid in the month of the significant decrease is two or more grades lower than the already established standard monthly remuneration (this also applies if there is no change in fixed wages).
C. The individual has provided written consent to the details of the revision under these special measures.

(2) Special measures for those who have already received a special revision due to a significant decrease in remuneration caused by leave of absence between June 2020 and May 2021
Individuals who meet all of the following criteria (A through D) are eligible:
A. Individuals who fall under either of the following due to leave of absence caused by the impact of COVID-19:
(a) Individuals whose remuneration decreased significantly between June 2020 and May 2021 and who received a special revision between July 2020 and June 2021.
(b) Individuals who received a special calculation by the insurer for the 2020 fiscal year's periodic determination based on remuneration paid in August 2020.
B. Individuals who do not fall under the standard periodic revision due to the recovery from leave of absence by July 2021.
C. Individuals whose standard monthly remuneration corresponding to the total remuneration (for one month) paid in August 2021 is two or more grades lower than the standard monthly remuneration determined in the September 2021 periodic determination.
D. The individual has provided written consent to the details of the revision under these special measures.

※ For individuals who received a special revision under (1) or (2) above, if the standard monthly remuneration based on the total remuneration received in the month when the leave of absence recovered is two or more grades higher than the standard monthly remuneration determined by the special revision, the standard monthly remuneration will be revised starting from the following month; therefore, a Notification of Change in Monthly Remuneration must be submitted.