Accountancy in Japan

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Social insurance

Health insurance and employee’s pension insurance

The social insurance program in Japan consists of medical care insurance, pension insurance and labour insurance.

Premiums

Premiums of Health Insurance and the Employees’ Pension Insurance systems are determined by multiplying the “monthly standard remuneration” of the insured person by the prescribed premium rate. The premium rate for Health Insurance varies with prefectures, from the lowest 96.9/1,000 to the highest 104.7/1,000 of the monthly standard remuneration. The premium rate of Tokyo is 99.1/1,000. The premium rate for Employees’ Pension Insurance is 181.82/1,000.

Employer and employee share premiums in equal proportions.

Labour insurance

Labour Insurance is a general term for

“Workmen’s Accident Compensation Insurance” and “Employment Insurance”. For the purposes of both, all undertakings which employ workers are, in principle, compulsory “applicable undertakings”.

Payment of premiums

At the beginning of the insurance year, employers are to pay the premiums as estimations. At the beginning of the following year, they should report the definite amount of premiums based on the total amount of wages actually paid during the past year, and adjustments are made accordingly.


Latest version updated 16th October 2017

Country Breakdown

127

Million

Population

¥

Japanese Yen

Currency

$ 4.94

Trillion

GDP

377,962

km2