Fiscal 2021 Begins: Changes Affecting Life and Work in Japan from April 2021Economy Society Lifestyle Work
Many things change at the start of the fiscal year in Japan. Here we sum up what is new financially and legally.
A temporary measure allowing prices to be shown not including consumption tax from April 2014, when the tax rose from 5% to 8%, came to an end on March 31, 2021. This makes prices easier for consumers to read, but retailers are concerned they may see prices as having risen.
Price Cuts at Uniqlo and GU
Fast Retailing meets the change in labeling rules by cutting its prices including tax to the previous values excluding tax at its Uniqlo and GU stores. This results in an effective price decrease of 9%.
Public Pension Benefits Down
Public pension benefits drop by 0.1% in the first reduction in four years. The full monthly benefit for kokumin nenkin, covering self-employed people and some other workers, is down ¥66 to ¥65,075. In the kōsei nenkin program for corporate employees, the monthly benefit for a “model household” will decrease by ¥228 to ¥220,496.
The Chance to Work Until 70
Companies have a new duty to strive to retain employees who wish to work until 70, although there are no penalties. The government aims to reduce the burden of social welfare payments by increasing the number of senior workers.
Equal Pay for Equal Work at Smaller Companies
Legislation forbidding an unreasonable disparity in the treatment of regular and nonregular employees is extended from covering only large companies to include small and medium-sized companies.
(Originally published in Japanese. Banner photo: A label showing the price including tax. © Nippon.com)