From the autumn of 2006, we will start seeing numerous changes in the Japanese social insurance system. The purpose of these changes is to ensure the sustainability of the government health and pension system. From 2007, the number of retirees is expected to increase rapidly while birth rates continue to fall year after year. As a result, the ratio of the elderly dependents rises and the increasing medical and pension expenditures must be funded somehow by the shrinking population. The changes below aim to stabilize this imbalance between revenues and expenditures.

The following summarizes the major changes that go into effect from September, October 2006 and April 2007.

Effective September 2006
	・	Welfare pension contribution per employee increased from 14.288% to 14.642%. of which the employer and the employee contribute an equal amount of 7.321% each.

Effective October 2006
	・	For individuals 70 or over and receiving a salary equivalent to full-time employment, the burden on medical expenses will increase from 20% to 30%, a 10% point rise.
	・	In addition to out-of-pocket contributions toward medical expenses, inpatients who are 70 or over will be required to pay for their own meals and in-house expenses.
	・	An increase in ceiling amounts to cover the excess on major medical expenses.
	・	An increase in the allowance to cover hospital delivery (birth) expenses, from ¥300,000 to ¥350,000.
	・	A decrease in the allowance to cover funeral expenses (of the employee or his/her dependent) from ¥100,000 to ¥50,000.

Effective April 2007
	・	An increase in the injury / sickness and maternity leave allowances from 60% to 2/3 of the employee's average daily wage.
	・	A decrease in out-of-pocket contributions toward medical expenses, for a child from the age of 3 and up until his/her admission to primary school, from 30% to 20%.
	・	Suspend injury / sickness and maternity leave allowances for voluntary members of the national health insurance system.
	・	Suspend extended maternity allowances* for those who are no longer a member of the national health system. *(Previously granted as long as the delivery was expected within 6 months after the expiry date.)
	・	Extend the insurance premium levels to 47, adding 4 levels at the each end of the scale, pulling up the upper limit up to ¥1,210,000 and bringing down the bottom limit to ¥58,000. The former is to anticipate increasing in premium revenues while the latter should encourage part-time workers to join the system.
	・	Restating the upper limit of an average bonus scale from one time payment of ¥2,000,000 to ¥5,400,000 per year in calculating an insurance contribution.
	・	Allowing splitting welfare pension entitlements earned during periods of marriage between divorced couples.