Did you know that every worker in Japanโincluding foreignersโmust pay into social insurance? Whether you’re a full-time employee, freelancer, or even a part-time worker, understanding Japan’s social insurance system is crucial to avoid fines and access essential benefits.
But what exactly does it cover? How much does it cost? And what happens if you donโt pay?
In this guide, weโll break down:
โ
The 5 key types of social insurance in Japan
โ
Who has to pay (and who can skip it)
โ
How much youโll pay (with real examples)
โ
How to enroll and claim benefits
By the end, youโll know exactly how the system worksโand how to make it work for you.
Japanโs Social Insurance System Explained
Japanโs social insurance (็คพไผไฟ้บ, Shakai Hoken) is a mandatory system that provides:
- Healthcareย (when youโre sick)
- Pensionsย (when you retire)
- Unemployment supportย (if you lose your job)
- Workerโs compensationย (for job injuries)
- Long-term careย (for elderly support)
Unlike some countries, Japanโs system is not optional for most workers. Employers and employees split the costs, and failing to pay can lead to visa problems or fines.
The 5 Types of Social Insurance in Japan
1. Health Insurance (ๅฅๅบทไฟ้บ, Kenkล Hoken)
- Covers:ย Doctor visits, hospital stays, prescriptions (70% off)
- Who Pays:ย Employees (5-10% of salary) + Employers (match contribution)
- Key Benefit:ย Maximum monthly medical bills are capped (based on income)
2. Pension Insurance (ๅนด้, Nenkin)
- Covers:ย Monthly payments after age 65
- Who Pays:ย Employees + Employers (split 50/50)
- Key Rule:ย Must pay forย 10+ yearsย to qualify
3. Employment Insurance (้็จไฟ้บ, Koyล Hoken)
- Covers:ย Unemployment benefits (up to 90% of salary for 3-12 months)
- Who Pays:ย Small % of salary (about ยฅ500-ยฅ2,000/month)
4. Workerโs Accident Insurance (ๅด็ฝไฟ้บ, Rลsai Hoken)
- Covers:ย Medical costs + lost wages if injured at work
- Who Pays:ย Employers only
5. Long-Term Care Insurance (ไป่ญทไฟ้บ, Kaigo Hoken)
- Covers:ย Nursing homes, in-home care (for ages 40+)
- Who Pays:ย Employees + Employers (after age 40)
Who Must Join? (Full-Time, Part-Time, Freelancers)
| Work Status | Must Join? | Notes |
|---|---|---|
| Full-Time Employee | โ Yes | Automatic enrollment |
| Part-Time (20+ hrs/week) | โ Often | Depends on company size |
| Freelancer/Self-Employed | โ No (but must pay National Health & Pension) | More expensive |
| Student (Working Part-Time) | โ Usually no | Check with employer |
โ ๏ธ Important: Some companies try to avoid enrolling part-timersโbut this is illegal if you work over 20 hours/week.
How Much Will You Pay? (2024 Rates)
Example for a ยฅ300,000/month salary:
- Health Insurance:ย ~ยฅ15,000 (ยฅ7,500 paid by you)
- Pension:ย ~ยฅ27,000 (ยฅ13,500 paid by you)
- Employment Insurance:ย ~ยฅ1,000
- Total Monthly Cost:ย ~ยฅ22,000
๐ก Good News: Premiums are tax-deductible!
How to Enroll & Check Your Status
If Youโre Employed:
- Your companyย automatically enrollsย you
- Check yourย pay slipย for deductions
- Get yourย insurance cardย within 2 weeks
If Youโre Self-Employed:
- Visit yourย local city office (ๅบๅฝนๆ)
- Sign up forย National Health & Pension (ๅฝๆฐๅฅๅบทไฟ้บ, Kokumin Kenkล Hoken)
- Pay monthly bills atย convenience stores
What Happens If You Donโt Pay?
- Visa Renewal Problemsย (immigration checks payments)
- No Healthcare Accessย (full medical bills if sick)
- Pension Cutsย (smaller retirement payments)
FAQ: Japanโs Social Insurance System
1. Can I opt out of social insurance?
Noโif youโre eligible, itโs mandatory.
2. Do foreigners have to pay?
Yes, if you work in Japan (even on a work visa).
3. Can I get my pension money back when leaving Japan?
Yes! File for a lump-sum withdrawal (up to ยฅ500,000 max).
4. What if my company wonโt enroll me?
Report them to the Labour Bureauโtheyโre breaking the law.
5. Is social insurance better than National Health Insurance?
Yes! Itโs cheaper and covers more (like unemployment).
6. How do I check my pension payments?
Get a Nenkin Net account (https://www.nenkin.go.jp)