Joining the Social Insurance System after Entering a Company

When you enter a company in Japan, it is a regulation that regular foreign employees join the Social Insurance system as Japanese staff do. There are two important factors that you need to be aware of about Social Insurance. One is "Health Insurance" in which you pay 30% of hospital expenses if you become sick. The other is the "Employees' Pension" that you contribute a certain amount of money (corresponding to your salary) into so that when you turn 65 years old you will receive approximately 50% of the average annual salary each year until you die. This is like a monthly reserve.

Half of the amount of the social insurance payment imposed on each employee is born by their employer. The monthly premium amount depends on your salary, but the higher your salary is, the higher the premium ratio becomes. Many employees pay approximately 10~15% of their salaries. If you have a family, all your family members join as dependents in the social insurance program together with you. Your company deducts your premium payments ? including those of your family members ? from your salary and forwards them to the social insurance office on your behalf.

Foreigners who have Alien Registration cards and who are going to stay in Japan for longer than one year but who are not regular company staff can join the National Health Insurance and National Pension programs. You will have to pay these premiums yourself. On the other hand, foreign students will have 60~70% of their premium payments subsidized. Procedures to take advantage of this insurance should be carried out at your local government office.

There is a system for foreigners who have paid into either the Welfare Pension or the National Pension system for more than six months but who will not be staying in Japan long-term to receive a lump-sum payment after applying for it within two years of returning to their home countries. Besides these kinds of insurance, there is Employment Insurance, which will be paid to employees if they lose their jobs. There is also Workmen's Compensation Insurance, which will be paid to employees if they have a workplace accident. Premiums for this insurance is paid by the company, not the employee.

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