Corporations are required to be an insured employer in accordance with social insurance laws, and violations will lead to penalties. The contribution rates are shown in the table below.
Expatriates are required to contribute to both the Japanese social insurance system and the one in their mother country, except for citizens of the following countries that have treaties in place to avoid double payments: Germany, UK, South Korea, USA, Belgium, France, Canada, Australia, Holland, Czech Republic, Spain, Ireland, Brazil, Switzerland and Hungary. This list is currently growing and more countries may pass a similar treaty at any time. For foreigners who are not exempt from making double contribution payments, the only remedy is to obtain a (possibly partial) refund from the pension system when they leave Japan.
Social/labor insurance
contribution rates
(as of September 2020)
| Monthly Pay | ||||
| Company | Employee | Total | Ceiling (rates applied to employees’ average monthly pay) |
|
| Social Insurance | ||||
| Health Care (Tokyo as example) |
4.935% | 4.935% | 9.987% | ￥1,390,000 |
| Long-term Care* | 0.895% | 0.895% | 1.790% | 1,390,000 |
| Pension | 9.150% | 9.150% | 18.300% | 650,000 |
| Child care | 0.360% | 0.360% | 650,000 | |
| Labor Insurance | ||||
| Unemployment | 0.600% | 0.300% | 0.900% | |
| Disability** | 0.300% | - | 0.300% | |
| Bonus | ||||
| Company | Employee | Total | Ceiling | |
| Social Insurance | ||||
| Health Care*** (Tokyo as example) |
4.935% | 4.935% | 9.987% | ￥5,730,000 |
| Long-term Care**** | 0.895% | 0.895% | 1.790% | 5,730,000 |
| Pension**** | 9.150% | 9.150% | 18.300% | 1,500,000 |
| Child care | 0.360% | 0.360% | 1,500,000 | |
| Labor Insurance | ||||
| Unemployment | 0.600% | 0.300% | 0.900% | |
| Disability** | 0.300% | 0.300% | ||
