Compared to overseas, Japanese companies apart from having good salaries are said to have a lot of employee benefits in Asia. In this article, for foreigners such as international students who want to work for Japanese companies, we would like to explain the most common benefits that Japanese companies provide to their employees.Employee Benefits “Fukurikosei”First, employee benefits in Japan (Fukurikousei) means various efforts aimed at supporting employees and their families in terms of health and life. Also in Japan, there are two types of welfares, legal employee benefits (Houtei-Fukuri Kosei) which are said by law that companies must provide to their employees, and the other is which companies voluntarily provide (regardless of the law) to their employees.Types of Employee BenefitsLegal Employee Benefits (Houtei-Fukurikousei)Below, we would like to briefly describe each type of legal employee benefits (Houtei-Fukurikousei). Worker’s Accident Compensation Insurance (Rousai-Hoken)Worker’s accident compensation insurance is an insurance when workers are injured or ill due to accidents that occur during work or on the way to work. Child Allowance (Kodomo/Kosodate Kyoushutsu-Kin)This is a contribution that is paid to a family with children when the company pays the government a fixed amount. Unemployment Insurance (Koyou-Hoken)Unemployment insurance is the allowance paid by the state when a worker loses his or her job.For example, if the company’s business performance is poor and you are dismissed due to the reason, you can apply to the country and receive about 50 to 80% of the salary of the previous job as an unemployment allowance in a period of 90 to 150 days. Health Insurance (Kenkou-Hoken)Health insurance is a medical insurance system to prepare for situations such as illness, injury, birth, and death.For example, if you go to a hospital and receive medical treatment, depending on the case, and you show your insurance card, you will pay about 30%, and the rest will be borne by the government. Nursing insurance (Kaigo-Hoken)Nursing insurance is an insurance system in which the government provides a portion of the cost needed for nursing care when is determined that it is necessary. Welfare Pension Insurance (Kousei-Nenkin-Hoken)Welfare pension insurance is a pension system that is provided in addition to the national pension.These legal employee benefits (Houtei-fukurikousei) are legally obligatory for companies when they employ workers.The percentage at which the company and employees pay is regulated by law, the company deducts the amount to be paid from the employee’s monthly salary and the company pays it to the country.Most Common Employee Benefits in Japanese CompaniesIn many cases abroad, transportation costs to go to work are borne by workers themselves, but in Japan, it is common for companies to bear the transportation costs of their employees. Like in this case, the welfare provided by companies differs between Japan and abroad.From now on, we would like to introduce the most common welfares that Japanese companies provide to their employees. Commuting Allowance (Koutsu-teate)It is a benefit that the company bears for the cost of commuting from your home to your office with round trip. Some companies pay the full amount, while others only pay a fixed amount. Most companies in Japan provide employees with commuting allowances. Medical Check-up (Kenkou-shindan)Under Japan’s Occupational Health and Safety Act, companies are obliged to take good care of their employee’s health.A medical check is recognized as welfare for this health care obligation, and most of the Japanese companies offer their employees a yearly medical check as welfare.For details on the types of medical examinations that foreigners can take in Japan, their contents, and the time required, please read the article below if you are interested.What kind of medical examination can foreigners receive at a Japanese company? Housing Allowance (Jutaku-teate)It is a system in which part of the rent is paid together with the monthly salary. The amount paid depends on the company. This allowance is often found in financial and manufacturing industries that require national transfers. Employee Stock Ownership Plan (Juugyoin Mochikabu-seido)This is a system in which employees who are willing to purchase stock can withhold the deduction from the salary and purchase the stock of the company or its parent company and receive the profit separately from the salary. It is a system often found in listed companies and big companies. Retirement Allowance (Taishokukin)The money an employee is paid when they retire. The purpose of the retirement allowance is to provide monetary support for retirees who worked for many years in the same company.However recently the cases in which an employee works until his retirement (60 years old) in the same company are decreasing notably. Also, the retirement allowance fund is not being managed well, and the burden on the company side is increasing.For these reasons, instead of a retirement allowance, companies that offer a monthly fund to collaborate with a defined contribution pension plan have recently increased. Special Leave for Weddings and Funerals (Keichou-kyuuka)It is a type of leave that can be taken when you or a close relative gets married, it can also be used in the case of bereavement. Maternity Leave (Shussan-kyuuka)Maternity leave is a type of leave that combinate the prenatal period and the recovery period after delivery. Depending on the company, you can get leave from 6 weeks before birth but on the other hand, the recovery period is set by law to get 8 weeks. Parental Leave (Ikuji-kyuuka)Parental leave is a leave system that helps employees take time off and concentrate on childcare until their child is one year old. Working from Home or Telework (Zaitaku-seido)It is a system that allows you to work from home without having to come to the office. This system is often found in IT-related jobs such as web designers and system engineers, also in sales-related jobs such as inside sales and customer support services. Choose your own PCThis is a system that allows employees to freely choose a pc from the types of pc that the company prepares.ConclusionIn addition to the welfare that we have introduced, some companies have different types of welfare. Japan’s welfare program is fulfilling worldwide, and it can be said to be one of the merits of working as an employee in Japan.IT engineers who are looking for work or change jobs for a Japanese company, please register with G Talent, a recruitment agency specializing in IT engineers. A professional consultant will support you in changing jobs for free.

Studying in Japan for a long period of time, such as for study abroad, working holiday, and job hunting, can be a pleasure, but at the same time, you may be worried about illness and injury.In this article, we would like to explain the conditions for taking out a medical insurance in Japan, the types of medical insurance, insurance premiums, and procedures for foreigners who are planning to stay in Japan for a long period of time.Is it Absolutely Necessary to have government medical insurance?If you are covered by the government’s medical insurance, the co-payment of medical expenses to hospitals is basically 30% for people between the ages of 6 and 70. For example, when a medical cost is 10,000 yen, you can only pay 3,000 yen if you show your health insurance card to the hospital. This is the advantage of medical insurance in Japan.In other countries, it is generally up to the individual to purchase medical insurance, but in Japan, all citizens (regardless of nationality) are required to have some type of medical insurance. In other words, all foreigners who are staying in Japan for a long period of time other than a short stay (3 months) are required to take out a medical insurance policy.What kind of Medical Insurances are available in Japan?In Japan, there are two types of medical insurance in general.1.Social health insurance (Shakai-hoken) The health insurance is for company employees in Japan.2.National health insurance (Kokumin-kenko-hoken) The health insurance is for housewife, freelancer, students with more than 20 years old and so on. In case of foreigners, it’s foreign students and foreigners who came to Japan on a working holiday and so on.From now on, we would like to explain these two types of medical insurance briefly.What is Social Health Insurance for Companies Employees?Social insurance (shakai-hoken) consists of five components: health insurance, employees’ pension insurance, long-term care insurance, workers’ compensation insurance, and unemployment insurance, health insurance is included in this social insurance (shakai-hoken).In Japan, full-time, contract, and part-time employees who meet the following requirements are eligible for social insurance: employees who work 20 hours a week, earn at least 88,000 yen a month and have been working for at least one year. Whenever a company hires an employee who meets certain requirements, it is obligated to have he or she joins the social insurance system.How much is the Insurance Fee for Social Insurance (shakai-hoken) ?The amount of social insurance fee varies depending on the area you live in, your income, and which health association you belong to. Therefore, the fees paid by a person working in Tokyo and Osaka are different.And the payment of social insurance premiums is usually made by the company. The company deducts the monthly social insurance fee from the employee’s monthly salary, so the employee does not have to go through the payment process.In case of employees and family members working for small and medium-sized companies who joined “Association Health Insurance” (Kyokai-kenpo), the health insurance premium rate in Tokyo from April 2020 will be 9.87% of their monthly salary as a monthly health insurance fee.However, instead of paying the entire amount individually, the company and the individual will pay half of the insurance premiums. Therefore, half of the 9.87% of your monthly salary will be deducted from your salary as health insurance premiums.In addition to the health insurance premiums, there are other social insurance fees such as employee pension insurance, which are generally deducted from your monthly salary.※The following links are for information about health insurance.What is a Health Insurance Society?Table of health insurance and employees’ pension insurance premiums since April 2020/ Association Health InsuranceWhat is National Health Insurance (kokumin-kennko-hoken) ?It is a health insurance program run by local governments and is available to those who are listed on the Basic Resident Register and are not covered by the company’s health insurance. You are obliged to purchase this insurance if you are staying in Japan for more than three months for purposes other than tourism. For example, foreign students who are studying in Japan or foreigners who are coming to Japan on a working holiday are required to join the National Health Insurance.If you want to know more about National Health Insurance, please take a look at the links that explain National Health Insurance in English, Spanish, Chinese, and other languages. National Health Insurance in English, Spanish, Chinese and other languages. ((About National Health Insurance / Multilingual))How much is the National Health Insurance Premiums?Insurance premiums vary greatly depending on the city, town, or village you live in, your income, and other factors. The following website provides a simulation of the national health insurance fees. However, please note that fees vary from city to city and town to town, so please use it as a guide only.National Health Insurance Premium Simulation (Japanese)Procedures and the Time Frame Required to Obtain Medical InsuranceProcedures for Health Insurance (social insurance) for full-time, contract, and part-time employeesHealth insurance (social insurance) is medical insurance that foreigners who come to Japan to work. He or She can enroll in when they join a company. Therefore, the first condition for enrollment is that the foreigner must have a labor visa.The application for social insurance (health insurance) is not to be completed by the foreigner him/herself, but together with the company where he/she joins the company. The company and the employee will fill out the documents prepared by the company and submit them to the health insurance association with necessary documents such as the validated residence card, passport, and my-number card.How long it takes for health insurance (social security) to become available?Using the “Association Health Insurance” (Kyoukai-kenpo) as an example, you will receive your insurance card in about 7 to 10 days from the date the company submits the documents. However, it tends to arrive later during the busy season in April and other months when people enter and leave the company. Since this is only an example, the period of time may vary depending on the health insurance association you join.National Health Insurance ProceduresIf you want to apply for National Health Insurance, you must apply for it within 14 days from the date of entry into Japan, the date of your move to another city or prefecture in japan, or the date you lost your social insurance membership (e.g., the date you resigned). Even if you resign from your current employer, you do not need to apply for National Health Insurance as long as you start working at your new employer within 14 days of the date you resigned.In Japan, it is compulsory to enroll in health insurance, so if there is a delay in the application process, you will be billed for the delayed amount at a later date, so please be careful. If you visit a hospital or other medical facility while you are not covered by the insurance, you will be responsible for 100% of the cost of the visit.We would like to introduce what you need in order to enroll in the National Health Insurance.Foreign Students (Ryuugakusei) PassportResident card (Zairyu-card)Student ID cardWorking HolidaysResident cardPassportWhen you lose eligibility for social insurance (when you leave a company)Residence Card or Special Permanent Resident CertificateOne of the following: certificate of disqualification (health insurance), release form, retirement certificate, or tax withholding certificate (with the date of retirement entered)How long it takes for National Health Insurance to become Available?Unlike health insurance (social insurance), you can apply for National Health Insurance at the city hall. The National Health Insurance card is issued on the same day as the application and can be used at hospitals and other facilities from the same dayConclusionIn Japan, it is compulsory to purchase medical insurance so that all citizens can easily go to the hospital even for minor symptoms such as “slightly feverish” or “feeling sick”. Because of this, the amount of money that an individual actually pays at the hospital is about 30% of the total cost.In addition, there is a system called the high-cost medical care benefits system, which sets an upper limit for monthly medical expenses based on income, so if you have a surgery or hospitalization that results in high medical expenses, you can receive a refund for any medical expenses that exceed the upper limit of your copayment.

When a foreigner starts working in Japan, it is important the company they will work for. Then it comes another important point, that is the place where they will live. It is common to rent an apartment in places where you can easily go to work, but there are other options as well, and some companies can reduce the burden of housing costs with their peculiar welfare system.This time, we will explain what you should know about welfare-related housing allowance at Japanese companies if you live in Japan.Japan’s Housing Subsidy System that Reduces the Burden of Housing CostsHousing costs are a major part of living expenses. Foreigners living in Japan for the first time do not know the rent market, so various concerns will arise. For reference, we will introduce the rent market price in Tokyo.Rental market price in Tokyo, Kanagawa, Saitama, ChibaAccording to the “2018 Survey of Housing and Land Statistics, Basic Tabulation on Houses and Households” (Statistics Bureau, Ministry of Internal Affairs and Communications, September 30, 1980), “Rents / rents per month” for three prefectures in Tokyo are It is like.・ Tokyo: 81,001 yen・ Kanagawa Prefecture: 68,100 yen・ Saitama Prefecture: 59,358 yen・ Chiba: 57,421 yenThe Tokyo metropolitan area is out of the 80,000-yen range, the next highest is Kanagawa prefecture with about 68,000 yen, and the Saitama and Chiba prefectures are in a 50,000 yen range. Many companies are concentrated in Tokyo, so those who want to live close to work should be prepared for those rent expenses. Of course, there are many Japanese who live in Kanagawa, Saitama and Chiba and go to work in Tokyo. For foreigners who want to reduce their rent, or who want to prioritize the size and layout of their homes, one option is to find a home in one of the three neighboring prefectures.Work with peace of mind at a company with a housing allowance!Many Japanese companies have a housing subsidy program as part of their welfare. For example, “Company A with a monthly income of 300,000 yen and no housing subsidy” or “Company B with monthly income of 270,000 yen and half of rent as housing subsidy”, which is the most attractive company? From a medium- to long-term perspective, you may be able to judge that “it is better to choose Company B”. So, when choosing a company in Japan, be sure to judge not only the salary but also the availability and content of the housing allowance system.What Kind of Housing Allowance Systems Exist?In general, Japanese companies provide a certain amount of monthly payment to employees who meet the conditions stipulated by the company, but there are several other patterns. Let’s explain about the general housing assistance system.01: Rent subsidy (Housing allowance)The most common housing assistance system is rent subsidy (housing allowance). Rent subsidy is a welfare program in which the company pays a portion of the employee’s housing expenses as an allowance. It is provided for the purpose of subsidizing rent for employees living in rental housing and subsidizing mortgages for employees living in their own homes. Even if there is a rent subsidy system, the terms and conditions of payment vary depending on the company.02: Rented company houseBorrowed company housing is a system in which employees live in houses rented by the company. It is common for a company to rent a property and collect a portion of the rent from the resident employee. The benefit is that the company pays a fixed percentage of the rent, so it can be cheaper to live in there than renting it yourself. In the past, it was common for companies to lease entire buildings and lend each house to employees, but recently employees often search for properties within the conditions and rent them under the company name.In addition, in the case of the rent subsidy described above, since it is paid on top of the monthly salary, the tax burden and insurance premium burden on employees will increase accordingly. On the other hand, rented company housing means that employees pay a fixed rent to the company, so there is no increase in tax burden or insurance burden.03: Dormitory for employeesAn employee dormitory is a building owned by the company for the residence of employees. Some dormitories are furnished and provide a telephone line, and some are equipped with meals (meals are offered cheaply). When you move in, you pay a fixed amount of rent, but you can use it for a much lower price than renting a nearby property yourself.However, employee dormitories have been declining in recent years due to the increasing number of employees who do not use dormitories even if they have dormitories, and the fact that many buildings were built during the period of high economic growth and are aging. As a result, finding a company with a dormitory could be difficult.Examples of Japanese Companies Housing SubsidiesThe housing subsidy system is a non-statutory welfare that is provided by the company, so some companies do not have this system. According to the “Comprehensive Survey on Working Conditions in 2015” (Ministry of Health, Labor and Welfare), 45.8% of all companies provide some housing allowance. By industry, IT and other information and communications businesses accounted for 56.0%, indicating that more than half of companies provided housing allowances.Of course, even if you have a housing subsidy system, the details will vary from company to company. For reference, examples of the conditions and amount of payment of the housing assistance system are explained below.Payment conditions for rent subsidies (Housing allowance)There are many cases where “distance” from the company is the condition for rent subsidy, such as ” ¥¥ monthly for employees living within ◯ km from the company.” The distance from the company varies depending on the company, such as 1.5 km, 2 km, 3 km, and 5 km. Some companies use the “number of stations” as a condition, such as “within ◯ stations from the nearest station to the company” instead of the distance.In addition, some companies provide rent subsidy after 3 years of joining the company, as a condition of rent subsidy regardless of where they live.Payment of rent subsidy (Housing allowance)According to the “2015 Survey on Working Conditions” (Ministry of Health, Labor and Welfare), data indicate that the average amount of housing allowance per person is 17,000 yen. By industry, the information and communications industry, including IT, was ¥ 25,312, much higher than the average.The actual amount of payment is set widely by the company, such as 15,000-yen, 30,000 yen, and 50,000 yen. In addition, there are companies that define it as “50% of rent”. However, in this case, there is often a limit.Due to the shortage of human resources in the IT industry in recent years, more companies are introducing new rent subsidy systems or increasing the amount of rent subsidies to acquire excellent human resources.Size and layout of rented company house and employee dormitoriesThe size and layout of rented company house and employee dormitories may vary from company to company. It usually depends entirely on whether the resident is single or married.The company dormitories and employee dormitories where single employees are occupied generally are one-room size, 1K, or 1DK floor plans, with rooms ranging from 6 to 8 tatami mats (10 to 14 square meters). For rented company housing and employee dormitories where married employees are occupied by 3 to 4 family members, it is common to arrange a layout of about 2DK to 3LDK. The average goes from 19.4㎡ to 23.4㎡.ConclusionForeigners working in Japan for the first time want to keep their expenses as low as possible until work is on track and life is stable. In this regard, companies that have systems such as rent subsidies (housing allowances), rented company housing and employee dormitories can help reduce the rent burden. When researching Japanese companies, be sure to check if there is a housing subsidy in the benefits.If you have a rent subsidy (housing allowance), be sure to check the payment conditions. For example, if “3 years of service” is a condition, you will not be able to receive assistance for the time being. In some cases, it is not eligible for payment. Be sure to check with your HR representative if you have any questions.

Foreigners working in Japan will be enrolled in the Japanese social insurance system. If you do not pay insurance premiums according to the law, you may suffer disadvantages like high treatment costs when you get sick. Also, foreigners who already work in Japan and are planning to change jobs should be careful. If you do not complete the procedure within the specified period, there is a risk of not being able to receive the coverage or losing money.This time, we will explain the Japanese social insurance system for foreigners who are looking to work in Japan and foreigners who are looking to change jobs in Japan.Do Foreigners Have to Join the Japanese Social Insurance?As a general rule, foreigners must join social insurance in Japan regardless of nationality. There are five types of social insurance in Japan: pension insurance, medical insurance (health insurance), worker’s accident insurance, unemployment insurance, and long-term care insurance.Pension insuranceAnnuity insurance is a mechanism in which the premiums paid by the working generation are paid to seniors aged 65 and over. There are two types of pension insurance in Japan: The National Pension and the Employees’ Pension. The national pension is obligatory for all people in Japan who are 20 to 60 years old, and foreigners are no exception. The Employees’ Pension is a pension that company employees and government employees join in addition to the national pension. Employees’ pension insurance is deducted from their monthly salary, but the company pays half.However, from the perspective of a foreign worker, there are some concerns like “Since I also have a pension in my home country, it is too expensive to also join insurance in Japan” or “What will happen to my paid insurance if I go back to my country?”. The Social Security Agreement and the lump-sum withdrawal system have been set up to solve such concerns of foreigners.What is a social security agreement?For foreigners who have a pension in their home country, having a pension in Japan means paying double premiums. Also, in order to receive a pension in Japan, you have to join the pension for a certain period, so there is a risk that insurance premiums won’t be refundable.The “Social Security Agreement” is established to avoid such disadvantages. The social security agreement is a system that allows foreigners from countries that have signed a social security agreement with Japan to join a pension in either Japan or their home country, depending on how long they work in Japan.>> Click here for details on social security agreementsWhat is lump-sum withdrawal?The lump-sum withdrawal is a system that allows a foreigner who has joined the Employees’ Pension and National Pension to receive a certain amount of money in case they return to their home country before they receive their pension.>> Click here for details of withdrawal lump sumMedical insurance (health insurance)Medical insurance (health insurance) is a system that supports the burden of medical expenses throughout society. By joining the medical insurance, the burden of medical expenses will be reduced when you get ill or injured or when you visit a medical institution.The term “health insurance” generally refers to the health insurance that employees join, and foreign workers are obliged to join as well as Japanese workers. Insurance premiums are deducted from the monthly salary, but the company pays half.On the other hand, “National Health Insurance” is for non-employees such as self-employed persons and full-time housewives. Foreigners also need to join the National Health Insurance if they stay in Japan for more than 3 months. Also, pay the full amount of the insurance premium, and the amount varies depending on the municipality where you live.Worker’s accident compensation insuranceWorker’s accident compensation insurance is a system in which an employee’s insurance benefits are paid if during work or commuting, a worker suffers injury, disease, disability or death resulting from employment-related cause.Foreign workers are required to join the work-related accident insurance as well as Japanese workers. There is no employee burden because the company bears the full amount of the insurance premium for the workers’ accident compensation insurance.Unemployment insuranceUnemployment insurance is a system that provides the benefits necessary to promote the reemployment of employees while stabilizing their lives in the event of unemployment. The so-called “unemployment allowance” is paid by the employment insurance.As long as the conditions of “a person who is expected to continue to be employed for 31 days or more” and “a prescribed working time of one week is 20 hours or more” are satisfied, foreign workers will be covered by employment insurance in the same way as Japanese workers. It is necessary to subscribe to. The insurance premium for employment insurance is deducted from the monthly salary, but the company pays part of it.Long-term care insuranceLong-term care insurance is a system that supports the elderly who need long-term care throughout society. Those who are 40 years old or older and under 65 years old and have medical insurance or 65 years old or older are obliged to join, and foreigners are no exception.Care insurance premiums must be paid from the age of 40 and are collected along with medical insurance (health insurance) premiums. If you are a company employee, you will be deducted from your monthly salary, but the company will pay half of it. Non-employees must be paid to the local government where they live together with the national health insurance premium.Social Insurance Procedures When Changing Jobs in JapanIf you are already working in Japan and wish to change jobs in Japan, you will need to apply for social insurance.If you have no retirement period and you work for a new job immediately, the job transfer will do most of the work for you. On the other hand, if there is a period of separation, you need to be careful as there are procedures that you must perform yourself.Procedures required for pension insuranceIn case you change jobs immediately, you only need to submit your pension handbook to your next employer. The person in charge will do the procedure.If case you leave or lose your job, you will need to switch from the Employees’ Pension to the National Pension. Within 14 days from the next day of retirement, please complete the procedure at the local municipal office (city / town / village office).Procedures required for medical insurance (health insurance)If you want to change jobs immediately, you will need to join a health insurance at the job change location, but the person in charge in your new company will do the procedure.If an unemployment period occurs, it is either “discretionary continuation” or “subscription to the National Health Insurance”. As a general rule, if you leave a company, you lose the insured certificate of the health insurance you were in that company, but if you meet certain conditions, you will join the same health insurance for two years after you leave the company. Can continue (optional continuation). The procedure for voluntary continuation is to be submitted to the health insurance association that you have joined within 20 days from the day after your retirement date.If you do not continue voluntarily, you will have to join National Health Insurance. Apply for National Health Insurance at the municipal office where you live within 14 days from the day following your retirement.Procedures required for worker’s accident compensation insuranceIf you want to change jobs immediately, you will have to join the worker’s accident compensation accident insurance at the job change destination, but the person in charge in your new company will do the procedure. Also, if you have a job separation period, you do not have to take any special procedures because you will not be enrolled in the workers’ compensation insurance during the job separation period.Procedures required for unemployment insuranceIf you want to change jobs immediately, just submit the employment insurance card and turnover slip you received from the company you quit to the new company. The person in charge will do the procedure.If there is a turnover period, you may be able to receive a so-called “unemployment allowance”. In that case, please contact Hello Work (a Japanese government employment agency) that has jurisdiction over the local government where you live.Procedures required for long-term care insuranceSince long-term care insurance is integrated with medical insurance (health insurance), it is OK if the necessary procedures for medical insurance (health insurance) are performed.ConclusionForeign workers are also covered by Japanese social insurance, so you can enjoy the benefits of social insurance in the same way as Japanese workers. Of course, this requires payment of insurance premiums. In order to work in Japan with peace of mind, make sure you understand the basic social insurance system and pay the insurance premium properly.Also, if a foreign worker who is already working in Japan quits the company and is leaving for a certain period of time, there are procedures to be performed by himself. Medical insurance (health insurance) and unemployment insurance (unemployment allowance) can make a big impact on your life while you are away from work, so be sure to the take steps to avoid any adverse situations.

Many foreigners who work in Japan must this question: “Do foreigners need to join the Japanese pension service?”. Well, let me get straight to the point, in Japan people from 20 years old to under 60 years old are obliged to join the pension system. Therefore, if insurance premiums are not paid there is a risk of having problems or losses in the future.In this article, we will explain the outline of the Japanese pension system, so please use it if you are a foreigner working in Japan.About the Japanese Pension SystemWhen you talk about “pension”, many of you may think that is “the insurance premium you paid that will return to you in the future”, but strictly speaking, this is a mistake. The Japanese pension system is a system in which the premium paid by the working generation is paid to the current elderly. In other words, it can be said to be based on mutual support between generations.And all people in Japan who are between 20 and under 60 are obliged to join the pension system.Types of Japanese pensionThere are two types of Japanese pensions: “National Pension” and “Employees’ Pension”.National pensionThe national pension is a pension that all people in Japan who are 20 years old or older and under 60 years old must join. National pension insured people are divided into the following three types, but all foreigners are also eligible.・ 1st type of insured person: self-employed person, student, unemployed person, etc.・ 2nd type of insured person: company employee, civil servant, etc.・ 3rd type of insured person: spouse of 2nd insured personEmployees’ PensionThe Employees’ Pension is a pension that the second type of insured joins in addition to the national pension. This means that foreigners who work at Japanese companies (*mandatory applied) must pay “national pension premium + employee pension premium”. The company pays half of the premium for Employees’ Pension.※ Mandatory business establishments: Business establishments that are obligated to join the Employees’ Pension and Health Insurance by law. A privately-managed establishment with 5 or more corporations or employees is a mandatory establishment.Types of pension you are eligibleThe role of the Japanese pension system is not only for retirement. A pension is paid when you are old, and a pension is also paid when an affiliate becomes disabled, and a pension is also paid to the bereaved when the member dies. In other words, it also functions as disability insurance and death insurance. There are three types of pensions you can get when you meet the conditions.Old-age pensionIf you are over 65, you will receive a certain amount every month. However, insurance premiums must be paid for at least 10 years (120 months).Disability pensionA certain amount will be paid if the subscriber is in a disability state that exceeds the disability certification criteria.Survivor’s pensionWhen the person dies, a certain amount is paid to the bereaved family such as children and spouses.Foreigners are also obligated to join the employees’ pension and the national pension!As mentioned above, all persons with an address in Japan who are 20 years old or older and under 60 years old are required to join the pension system. The same applies to foreigners regardless of nationality.If a foreigner living in Japan works at a company (mandatory company), it is necessary to join the employees’ pension in addition to the national pension. In this case, insurance premiums are deducted from the salary, and it seems that there are few foreigners who have not joined or haven’t paid yet.On the other hand, if a foreigner residing in Japan works at an establishment other than a mandatory company, it will be only enrolled to the national pension. The national pension must be paid by yourself and pay monthly insurance premiums, so be careful not to inadvertently overdue payments or become uninsured.Social security agreements and withdrawal lump sums to overcome the disadvantages of being a foreignerIt is natural that foreigners feel anxiety when joining the Japanese pension system. Some may be thinking “Even if join a Japanese pension, I cannot receive it when I return to my home country in the future …” or “The financial burden of insurance premiums is huge if I join it in Japan because I am enrolled in the pension of my home country, …”.In order to avoid the disadvantages of foreigners regarding pension receipts and insurance premiums, the “Social Security Agreement” and “Lump-sum Withdrawal” systems can be provided.What is a social security agreement?For foreigners who have a pension in their home country, the insurance premium will be doubled by joining the pension in Japan. In Japan, it is necessary to pay an insurance premium of 10 years or more in order to obtain an old-age pension. For example, foreigners who return to Japan in 7 years are not eligible, and the insurance premium for 7 years is withdrawn. The “Social Security Agreement” is established to avoid such disadvantages for foreigners.The social security agreement is a system that allows foreigners from countries that have signed a social security agreement with Japan to join the pension in either Japan or their home country, depending on how long they work in Japan. There are differences depending on the country, but basically a social security agreement is concluded with the following contents.Prevent double charges of insurance premiumsIf you are staying in Japan for less than 5 years, you only need to join the pension in your home country.If you have stayed in Japan for more than 5 years, you only need to join a Japanese pension.These are provisions to prevent double charges of insurance premiums.Total pension membership periodPension enrollment period in your home country can be combined with pension enrollment period in Japan.Pension enrollment period in Japan can be combined with the pension enrollment period in your home country.These are provisions that allow you to receive pensions in Japan or in your home country by adding up the pension enrollment period in Japan and the pension enrollment period in your home country so that insurance premiums are not discarded. For example, even if the pension enrollment period in Japan is less than 10 years, you can get a Japanese old-age pension if the total pension period in your home country is more than 10 years.Of course, in order to be eligible for social security agreements, the foreigner home country must have a social security agreement with Japan. As of July 2019, Japan has signed agreements with 22 different countries, 19 of which are in effect. Please check the following for the status of social security agreements with each country.> Social Security Agreement | Japan Pension ServiceWhat is withdrawal lump sum?From a different perspective than social security agreements, the “lump-sum withdrawal” is a system prepared to avoid the disadvantages for foreigners regarding pensions.Withdrawal lump-sum payment is a system that allows a foreigner who participated in the Japanese Employees’ Pension and National Pension to receive a certain amount of money when returning to their home country before receiving the pension. Foreigners who are not from social security agreement countries should consider whether to receive a lump sum withdrawal when returning home. However, the amount of lump-sum withdrawal payment is usually less than the premium paid during your stay.Foreigners in social security agreement countries can also receive a lump-sum withdrawal payment if the conditions are met. However, if you receive the lump-sum withdrawal payment, you are not participating in the Japanese pension, and it is not possible to add up the total pension period during that period.Conditions for foreigners to get withdrawal lump sumThe lump-sum withdrawal fee must be claimed within two years from the date on which the insured status of the Employees’ Pension / National Pension is lost and has no longer an address in Japan. You can claim a lump sum when all of the following conditions are met:When you not possess a Japanese nationalityThe number of months equivalent to three-quarters of the number of months of premium payment period as the first insured person of the national pension and the number of months of premium exemption period, the number of months equivalent to one half of the number of months of premium exemption period, the total number of months equal to one-fourth of the number of months in the three-quarter exemption period, or the insured period of Employees’ Pension Insurance is more than 6 months.When there is no address in JapanWhen you do not have the right to receive a disability pension or other pensionFor example, in the case of a welfare pension, if a foreigner who has an enrollment period of 6 months or more and does not have the right to receive a disability pension returns to Japan, he or she can claim a lump sum payment according to the enrollment period.How to request a lump sumIf you want to request a lump-sum withdrawal fee, submit the necessary documents to the Japan Pension Service. Please check the following for invoices and attached documents for withdrawal lump sums.>> Withdrawal lump-sum for short-term foreigners | Japan Pension ServiceConclusionIn Japan’s pension system, a system to prevent foreigners from paying double payments or to be discarded from insurance premiums is provided. Foreigners working in Japan should be fully aware of social security agreements and lump-sum withdrawal payments, so that they do not lose their insurance premiums or future pension benefits.