Japan Unveils Sweeping Permanent Residency Overhaul: Income Above Average, 30-Year Pension & B1 Japanese Required

Editorial Team
Aug 6
5 min read

TOKYO, August 5, 2026 — Japan's Immigration Services Agency (ISA) has unveiled a draft revision to its permanent residency guidelines that will require applicants to maintain household income exceeding the Japanese average, meet a stringent 30-year pension benchmark and demonstrate Japanese-language proficiency equivalent to CEFR B1 (JLPT N2).

The changes — the most significant tightening of permanent residency rules in decades — will take effect in phases starting October 1, 2026, with the income requirement applied retroactively to applications filed as early as April 2026.

Published: August 5, 2026 | By VisasUpdate.com Editorial Team

Japan permanent residency income requirements 2026 – infographic showing new requirements: income above Japanese average (¥5.75M reference), 30-year employee's pension benchmark, B1 Japanese language, and retroactive application from April 2026. — Japan tightens permanent residency rules with income above average, 30-year pension benchmark, and B1 Japanese requirement from 2026.

Reasons for the Government's Stricter Regulations

Justice Minister Hiroshi Hiraguchi told reporters that the revisions were necessary to ensure permanent residents do not become a public burden.

"A person granted permanent residency status is expected to make Japan the base of his or her life for the remainder of that life. For that reason, particularly careful examination is required."— Kentaro Ando, ISA Official

The government's decision follows a January 2026 comprehensive policy on foreigner integration that called for a review of permanent residency requirements. The ISA cited cases where permanent residents struggled to communicate at municipal counters or failed to understand tax notices due to limited Japanese ability, contributing to unpaid public charges.

The New Requirements: What's Changing?

1. Income: Above the Japanese Average

Under the proposed guidelines, applicants must demonstrate household income that has continuously exceeded the average for Japanese households, adjusted for household size.

Aspect	Details
2024 Average Household Income	¥5.75 million (reference point)
Median Household Income	¥4.51 million
Households Below Average	61.5%
Income Review Period	5 years of records (entire period, not just application date)

Important: The ¥5.75 million figure is not a fixed threshold — officials will consider multiple government surveys rather than a single published figure. However, the ISA has made clear it will examine whether the new required income level has been maintained throughout the five-year review period, rather than only at the time of application.

Previously, permanent residency was often granted with an annual income of around ¥3 million. The new requirement effectively doubles the practical income bar.

2. Pension: 30-Year Employee's Pension Benchmark

The draft adds a new pension requirement for the first time. Applicants must demonstrate that their expected future pension benefits reach the same level as would be received after 30 years of enrollment in Japan's employees' pension system while earning income above the benchmark for their household size.

Aspect	Details
Pension Type	Employee's Pension Insurance
Enrollment Period	30 years
Assessment	Projected benefits at the required income level
Shortfall Option	Financial assets may be used to cover projected pension shortfalls

Financial assets can be utilized to address any anticipated pension deficit, especially for individuals who moved to Japan later in life and have less opportunity to accumulate pension contributions. However, real estate and other assets will not be considered, as the agency mentioned it would face challenges in consistently evaluating their value over time.

3. Japanese Language: B1 Level (JLPT N2)

Applicants will generally need Japanese-language ability equivalent to CEFR B1 level (JLPT N2) under the government's language-education framework.

The ISA said this level is required to prove applicants are able to communicate in the nation and function independently. Officials will also consider:

Understanding of Japanese laws, taxation and social-security systems
Whether any school-age children are attending school

4. "Affirmative Benefit" to Japan

The revised guidelines state it is not enough for permanent residency to merely "not conflict" with Japan's interests. It must "affirmatively and concretely benefit Japan".

5. Tighter Spouse Exception

The exception to the general 10-year residence requirement for spouses of Japanese citizens and permanent residents will be tightened:

Aspect	Current	Proposed
Marriage Duration	3 years	5 years
Residence in Japan	1 year	3 years

New Revocation Grounds (From April 2027)

In a separate announcement, the government issued guidelines outlining new criteria for revoking permanent residency under the immigration law amendments enacted in 2024.

Revocation Ground	Details
Deliberate Non-Payment	Taxes, health insurance premiums, pension contributions or other public charges
Immigration Violations	Serious or repeated violations
Criminal Convictions	Prison sentences for specified intentional crimes (theft, fraud, extortion, murder, etc.)

Exemptions: Nonpayment caused by illness, unemployment, disasters or other unavoidable circumstances would not normally result in revocation. Those who respond to payment demands and agree to installment or deferral arrangements would also generally be excluded.

Implementation Timeline

Requirement	Effective Date	Retroactive Application
Income Requirement	October 1, 2026	April 2026 applications
Pension Requirement	October 1, 2026	April 2026 applications
Language & Other Requirements	April 2027	No
Revocation Guidelines	April 2027	No

Key Point: The income and pension requirements will apply to applications filed up to six months earlier — including those submitted in and after April 2026 that remain under review.

The ISA opened the proposed guidelines for public comment on August 4 for one month and expects to finalize and publish them around October 1.

Application Fee to Skyrocket

Application fees for permanent residency are set to skyrocket twentyfold from October — from the current ¥10,000 to ¥200,000. Justice Minister Hiraguchi confirmed that fees are only charged when the application is approved, so there is no need to financially compensate applicants to whom the changes apply retroactively.

Critics Denounce Changes as "Xenophobic" and "Foolish"

The proposed changes have drawn sharp criticism from legal experts and advocates.

"Foreign nationals should not be treated as objects or merely as a means to an end. When individuals come to Japan, work, and establish their lives here, we must embrace them as colleagues and as unique human beings, taking responsibility for their futures. The new policy overlooks this, which I find profoundly xenophobic and deeply problematic."— Shoichi Ibusuki, Co-representative of a network seeking ISA reform

"At a time when Japan has fewer workers and fewer people to sustain traditional culture, skills and mutual support, this is a drastic deterioration that will extinguish hope for the country's future. People who love Japan and were prepared to settle here and contribute to Japanese society will leave."— Chie Komai, Lawyer and co-representative

Some lawyers have described the changes as "foolish," doing little to benefit Japan with its aging population and low birthrate.

Quick Reference Summary

Requirement	New Standard	Effective
Income	Above Japanese household average (¥5.75M reference)	Oct 1, 2026 (retroactive to April 2026)
Pension	30-year employee's pension enrollment equivalent	Oct 1, 2026 (retroactive to April 2026)
Japanese Language	CEFR B1 (JLPT N2)	April 2027
Spouse Exception	5 years marriage + 3 years residence	April 2027
Application Fee	¥200,000 (from ¥10,000)	October 2026
Revocation Grounds	Tax/pension non-payment, serious violations, prison sentences	April 2027