From April 2007, we will start seeing numerous changes in the Japanese social insurance system.
1. |
Health Insurance |
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1) |
There will be additional four grades at the low and high ends of the insurance premium table. This increase the number of grades from 39 to 47. |
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2) |
Restate the upper limit of the annual leviable bonus amount to \5.4million per year (4/1 - 3/31 next year) for insurance calculation. |
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3) |
Increases in the jury/sickness and maternity leave allowances from 60% to 66.67% of the employee's average daily wage. |
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4) |
Abolition of injury/sickness and maternity leave allowance for members wishing to continue the health insurance system
(however, individuals who received before April 1, 2007, may continue collection after April 1, 2007). |
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5) |
Abolition of the extended maternity allowances for those who have delivery within six months after her last day of employment. |
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6) |
It will become possible for insured persons under the age of 70 to claim benefits to the medical institutions for the high-cost medical care by constantly paying the maximum amount.
However, one must be certified as an insured person through the issuance of a certificate beforehand. |
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2. |
Pension Insurance |
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1) |
From April 1, 2007, divorced couples may split their welfare pension entitlements (remuneration related portion) vested
during their period of marriage upon agreement of both parties or an approval by a family court. |
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2) |
For those born after April 2, 1937, when the employee reaches age 70, a portion of Old-age Employee's Pension may not be payable in certain instances.
Employers must submit reports regarding employment, retirement, or salary statements for such employees. |
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3. |
Worker's compensation insurance |
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For the purpose of aiding the victims of asbestos, the burden of employer's portion of workers' compensation insurance will slightly rise (0.005%). |
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4. |
Employment Insurance |
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Premium rates are as shown: |
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| | Premium total | by Employer | by Insured person |
| Ordinary business | 1.5% | 0.9% | 0.6% |
| Agriculture, Forestry, and Fisheries (Brewing industry) | 1.7% | 1% | 0.7% |
| Construction business | 1.8% | 1.1% | 0.7% |
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5. |
National Pension |
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A raise in the premium of \240 to \14,100 (month) |
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6. |
Equal Employment Opportunity Law |
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Originally, the law was established to eliminate discrimination against females. However, the new law now also applies to males.
It explicitly forbids any discrimination between genders in the process of job advertising, recruiting, job assignments (including allocation of duties and grant of authority),
promotion, training, fringe benefits, retirement, or any other employment situations.
As an example, the law forbids actions such as demotion, change in type of job or employment status, encouragement of retirement, and updating employment contract.
Further, it shall be a legal obligation for all employers to discourage sexual harassment at workplace. This includes the protection of males, not only females. |
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7. |
International Social Security Agreements |
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In October 2005, the Social Security Agreement between Japan and the US came into effect.
The Agreement grants Japanese nationals (or Americans) working in the US (or in Japan) on secondment an exemption to join the US (or Japanese) social security system for up to five years
upon providing an exemption certificate. Further, the agreement permits combining summing the periods contributed towards both the Japanese and US pension systems ("totalization").
If such periods total 10 years or more, individuals will be eligible for US social security. If such periods exceed 25 years, individuals will also be eligible for Japanese pensions.
Similar agreements will be executed between Japan and Belgium in January 2007, and one between Japan and France will go into force in June 2007.
Currently, Japan works on such agreement with Canada and Australia. Details are still being discussed for the agreement with Holland. |
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| Germany | Signed April 1998 | Effective February 2000 |
| United Kingdom | Signed February 2000 | Effective February 2001 |
| Korea | Signed February 2004 | Effective April 2005 |
| United States | Signed February 2004 | Effective October 2005 |
| Belgium | Signed February 2005 | Effective January 2007 |
| France | Signed February 2005 | Effective June 2007 |
| Canada | Signed February 2006 | In final discussions |
| Australia | Signed February 2007 | In final discussions |
| Holland | In discussions | |
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Status of International Social Security Agreements |
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| Country | Scope of Insurance System covered by the Agreement | Totalization Agreement |
| Germany | Japan: Pension
Germany : Pension | Yes |
| United Kingdom | Japan: Pension
U.K.: Pension | No |
| South Korea | Japan: Pension
South Korea: Pension | No |
| United States | Japan: Pension and Health
U.S.: Pension and Health | Yes |
| Belgium | Japan: Pension and Health
Belgium: Pension, Health, Worker's compensation insurance and Unemployment | Yes |
| France | Japan: Pension and Health
France: Pension, Health and Worker's compensation Insurance | Yes |
| Canada | Japan: Pension
Canada: Pension | Yes |
| Australia | Japan: Pension
Australia: Pension | Yes |
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