Social Insurance

1-  Outline of Labor / Social Insurance Systems in Japan

 

 

Insurance

Benefit

Coverage

Premium rate

(% of total annual wage)

Remarks

Employer pays

Worker pays

Workers’ Accident Compensation

Insurance

Benefits are paid as compensation for medical expenses, work missed, disability or death incurred as a result of work or while commuting to or from work.

All businesses that employ workers must have this insurance.

0.3% ( In cases of import and trade, and sales industries)

 

(*1)

– Special coverage available for employers

-Premium rates differ according to industry

Employment Insurance

Benefits are paid to unemployed workers, workers on child care leave and the elderly.

All workers whose prescribed working hours are not less than 20 hours per week must have this insurance.

0.65%

0.3%

Persons enrolled in unemployment compensation programs overseas are exempt.

Health Insurance and Nursing Care Insurance

Benefits are paid for illness or injury not arising as a result of work or while commuting, and for childbirth, etc.

All full-time workers employed at incorporated companies, as well as part-time workers whose prescribed working hours were not less than 75% of full-time workers.

4.925%

(5.745% if aged 40 or over)

4.925%

(5.745% if aged 40 or over)

This premium rate applies only to Japan Health Insurance Association Run Health Insurance (in Kanagawa).

Employees’ Pension Insurance

Benefits are paid for old age, disability and death

9.150%

9.150%

A system exists under which premiums are partially returned to foreign nationals upon withdrawal from the insurance program.

Child Benefits Contribution

Contribution to a social welfare system for child benefit, and differs in nature from the welfare benefits offered to workers through their employers.

0.36%

 

Total

 

15.385%

(16.205% if aged 40 or over)

14.375%

(15.195% if aged 40 or over)

 

                                                                                                              

                                                                                                                    As of June 2022

(*1) 0.002% will be added to the premium rate for Workers’ Accident Compensation Insurance for the time being in order to fund benefits for asbestos-induced diseases.

If you hire an employee and fall into any of the following cases, please feel free to contact us. Bilingual Certified Social Security and Labor Consultant will support you.
* I don’t know the employee should have social insurance,
* I don’t know the procedure of enrollment, so I’d like to ask for this procedure, etc.

Please contact : Contact Form

2-  Employment Contract

When hiring an employee, the first thing you have to do as an employer is making employment contract rather than a verbal agreement in order to prevent various troubles related to employment contracts.

The employer must specify the working conditions when concluding an employment contract. The items must be stated in writing and handed over to employees, please see the following link:

Determination and Notification of Working Conditions at the Time of Hiring