How does Social Insurance in Japan work?



Modified on: Mon, 20 Oct, 2025 at 6:33 PM

TABLE OF CONTENTS



This page provides an overview of the key social insurance programs in Japan, including their coverage, eligibility, and contribution requirements. It is designed to help you understand your rights and obligations, and how these programs support both employees and employers.


1. Health Insurance (健康保険 – Kenko Hoken)

Coverage:

  • Medical care for employees and their dependents
  • Maternity benefits
  • Non-occupational injury/sickness allowances

Administered by:
Kyokai Kenpo (全国健康保険協会)

Contributions:

  • Shared by employer and employee
  • Based on standard monthly remuneration


2. Welfare Pension Insurance (厚生年金保険 – Kosei Nenkin)

Coverage:

  • Retirement pension
  • Disability pension
  • Survivors’ benefits

Eligibility:

  • Mandatory for employees under 70 years old

Contributions (2024):

  • 9.15% of standard monthly remuneration (shared by employer and employee)


3. Unemployment Insurance (雇用保険 – Koyo Hoken)

Coverage:

  • Unemployment benefits
  • Childcare and family care leave benefits

Contributions (2024):

  • 0.95% of total income (shared by employer and employee)
  • Childcare/Family Care Leave: ~0.36% of standard monthly remuneration (varies by city)


4. Nursing Care Insurance (介護保険 – Kaigo Hoken)

Coverage:

  • Long-term care services for elderly (65+)
  • Support for individuals aged 40–64 with age-related illnesses

Contributions (2024):

  • 0.8% of standard monthly remuneration (varies by city)
  • Only applicable to employees aged 40–64
  • Employees aged 65+ pay directly to their municipality (no employer contribution)


5. Workers’ Compensation Insurance (労働者災害補償保険)

Coverage:

  • Work-related injuries, illnesses, or death

Contributions (2024):

  • 0.3% of total income
  • Fully paid by the employer
  • Rate may vary by city and industry


6. Asbestos Health Damage Relief

Coverage:

  • Financial support for individuals affected by asbestos-related illnesses

Contributions (2024):

  • 0.002% of gross income
  • Paid by the employer


Special Note for Part-Time Employees

For employees contracted to work less than 30 hours per week, only the following insurances apply:

  • Unemployment Insurance
  • Workers’ Compensation Insurance
  • Asbestos Insurance

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