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This is an update on changes which may affect your company. |
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The health insurance rate increased from 8.18% to 9.32% (based on the Health Insurance Association - Tokyo). The premiums for pensions may change in September 2010. |
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Elderly Care Insurance (effective March 2010) |
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Employer contribution - from 0.595 % to 0.75% |
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Employee contribution - from 0.595 % to 0.75% |
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Major revisions to Employment Insurance are as follows (effective April 1, 2010) |
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1 |
Eligibility for enrollment in the employment insurance in the past required a part-time or leased employee to work at least 20 hours per week with an expected employment term of at least six months while under the revision the employment term requirement has been shortened to as little as 31 days. |
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Increases in employment insurance rates in the general business sector |
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Employer contribution - from 0.7% to 095% |
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Employee contribution - from 0.4% to 0.6% |
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There are no changes to the workers compensation insurance rates. |
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Labor Standards |
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A new set of standards to promote the moderation of long working hours, health of the workers and the balance between work and the home was implemented as of April 1, 2010. These standards should be incorporated in the labor-management agreement. Some of the key standards affecting companies are: |
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1 |
Overtime premium rates for Larger Companies |
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For larger companies with over 50 full-time employees, the employer may be required to pay 150% of the standard wages for overtime worked in excess of 60 hours per month or grant the employees paid leave. |
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2 |
Overtime premium rates in general |
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The government discourages employees to not exceed 45 hours of overtime per month. For those who do, the government is recommending documentation in the labor-management agreement including a clause granting employees to receive a minimum of 125% of their standard wages for such hours. |
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3 |
Vacation |
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Employers can grant employees paid leave by the hour up to a maximum of five days per year. |
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