Job in Japan 7 – Statutory Company Benefits

Hi there! I’m Aki, a Japanese former HR head from the global finance industry. Benefits vary by company, but some are must-haves under Japan’s laws, while others are company perks. Below, I walk you through statutory social insurance (Shakai Hoken)—what’s required, how it works, and tips for foreigners. Let’s dive in!

Social Insurance (Shakai Hoken)

If a company has 5+ employees, it’s legally required to offer these—part of your payslip deductions.

• Health Insurance (Kenko Hoken): Covers all medical needs—medical, dental, vision—no separate plans. Your card (now often merged with the “My Number” ID, Japan’s unique government number) works at any clinic or hospital, no network hassles. Premiums split 50/50 with your employer, deducted monthly. You’ll get it 3-4 days after starting, but coverage kicks in Day 1—reimburse early visits if needed. Dependents can get cards too—seamless family coverage.

Tip: When you switch jobs, ensure no gap between old and new company coverage. Extra perks: annual health checks, maternity/childcare subsidies, even hotel discounts—check with HR!  

If you are a Self-employed, National Health Insurance is available. You can obtain it at city hall as long as your residential card is registered to the city hall.

• Welfare Pension (Kosei Nenkin): Japan’s Social Security equivalent. Contributions is 50/50 split between employee and employer. scale with pay, deducted monthly. Basically you can start collecting the pension from 65 years old. Average payout is  ¥150K/month after 40+ years—yikes, not enough! The government says you’ll need ¥20M extra to survive senior years. So on top of this government driven pension, most of companies offers retirement allowance. I will explain the company offered benefits in a different blog.

Good news for foreigners: If you’ve paid in for 6 months to 10 years and leave Japan permanently, claim a Lump-Sum Withdrawal Payment (Dattai Ichijikin). You are eligible if you meet the condition below:

a.        Non-Japanese

b.        6 months-10 years premium payment

c.        left Japan, apply within 2 years.

If you paid the premium over 10 years, you’ll get a regular pension instead—think twice if you might return!

• Unemployment Insurance (Koyo Hoken): Cash if you lose your job—voluntary or not. To qualify for unemployment benefits (失業手当 – Shitsugyō Teate), you must meet all of the following conditions:

a.        Paid into Employment Insurance for a Minimum Period - At least 12 months of coverage within the past 2 years before losing your job.If dismissed suddenly (company bankruptcy, restructuring, etc.), you need at least 6 months of coverage within the past year.

b.        Lost Your Job Involuntarily or Due to Valid Reasons

-              Company reasons: Layoffs, company closure, contract non-renewal.

-              Personal reasons: Resignation due to unavoidable reasons (e.g., harassment, health issues, relocation

c.        Actively Seeking a New Job

 Requirement is pretty complicated, so please consult with Hello Work Stuff.

• Long-Term Care Insurance (Kaigo Hoken): Kicks in at 40 years old – employee and employer contribution = 50/50 split, to fund senior care. Use it for family too—e.g., cancer care. Small cost, big help later.

•  Workers’ Compensation (Rosai Hoken): 100% employer-paid—no deduction. Covers work-related injuries or illnesses, but not commutation mishaps.

 Labor law (Rosai Hoken) requires work causation and on-duty triggers—commuting’s personal, not company-directed. Exceptions: accidents on “reasonable” routes (e.g., station stairs, traffic) count as “commuting disasters” if no detours (e.g., coffee stops kill it). Out of luck if unapproved car commuting or off-duty errands. Ask HR for claims

Wrap-Up

Statutory benefits lock in security—but only fully for permanent employees. If you’re a contractor, part-timer, or intern, your eligibility for social insurance (Shakai Hoken) varies. Full-timers get the whole package—health, pension, unemployment—from Day 1. Others? It depends on hours or contract terms—check with HR! For expats, it’s a safety net worth understanding: health cards cover any clinic, pension refunds ease exits, and unemployment cushions job hunts. Pair these with company perks like housing, and you’re set. Next: I will over company perks.