Social Insurance System – types of pension insurance
The term “social insurance” captures health, medical, and pension plans and systems in Japan and is most commonly represented by health insurance laws (Health Insurance Law and National Health Insurance Law) and pension laws (Welfare and Pension Law and National Pension Law).
Welfare and Pension Law “Welfare and Pension Law” is a direct translation of 厚生年金保険 (kosei nenkin hoken), the official name of the law. However, the Ministry of Health, Labour, and Welfare together with the Social Insurance Agency use the term “Employee’s Pension Insurance” interchangeably because Welfare and Pension Law is a workplace-based insurance system that AUTOMATICALLY covers “employees” of companies with 5 or more workers or of incorporated companies, regardless of the employee’s age or nationality.
“The Employees’ Pension Insurance is a superannuation (I have no idea what that term is supposed to mean) system that provides coverage with “Earning-related Pension” payments on top of Basic Pension provided by the National Pension System.” (Social Insurance Agency)
Examples of workers covered under Employees’ Pension Insurance include (1) employees who work under an employer with more than 5 employees, generally regardless of the industry in which the employer operates and (2) employees who work for an incorporated employer such as a kabushiki-gaisha (株式会社). These employees are covered in addition to their National Pension System coverage.
Examples of workers NOT covered under Employees’ Pension Insurance include workers whose employer is unincorporated and operate in industries such as farming, fishery, hotel, salon, law, accounting, and religion. These employees are covered under National Pension System no additional coverage is available.
National Pension Law Because Welfare and Pension Insurance Law or Employees’ Pension Insurance are designed only to cover corporate employees, other types of workers such as self-employed individuals and business owners are not covered under the Employees’ Pension Insurance. To complement this, “National Pension Insurance Law (国民年金保険法 or kokumin nenkin hoken ho)”, covers all workers who do not qualify for coverage under the Employees’ Pension Insurance system.
“The National Pension system, which is Japan’s basic public pension system, is designed to provide “Basic Pensions” of a common amount for all coverage.” (Social Insurance Agency). Social Insurance Agency’s translation is really bad. I mean, did anyone understand what “Basic Pension” and “common amount for all coverage” means? At WJA, I hold it my mission to provide information on Japanese employment and social insurance related laws in plain simple English.
資本主義社会がどんどんと浸透するなか「自己責任」というものがどんどん重くなってきました。そして、老後のため十分な資金を蓄えておくことも私たちの個人的責任になりつつあります。そんなため、私の場合、勤務している会社の401(k)に加入しているのと、毎月定額を貯金に回し、それが一定額になると都度利回りのよい定期預金に組み入れています。また、少額ですが、株式運用などもしています。その他、Roth IRA という老後の資金を貯める制度への加入を今検討しています。
定期購読している Smart Money という雑誌があるのですが、この雑誌は personal finance の情報を豊富に掲載しています。今からできる退職後の資金作り、なんていったコーナーもありますので、いい記事がありましたらWJAで紹介していきたいと思います。
Thinking about working in Japan? Preparing to move overseas almost becomes a full-time job in the final weeks of your departure. Many people quit their jobs weeks before so they can devote their time to preparation. But what about your health insurance? Short-term health insurance plans are a great solution. ↓
Below are links to Certified Social Insurance and Labor Consultants providing services in English. Also below are useful links related to working in Japan and links to women balancing career and personal happiness. WJA realizes and promotes women's increasing value in the labor market.