Did you know that every worker in Japan—including foreigners—must pay into social insurance? Whether you’re a full-time employee, freelancer, or even a part-time worker, understanding Japan’s social insurance system is crucial to avoid fines and access essential benefits.
But what exactly does it cover? How much does it cost? And what happens if you don’t pay?
In this guide, we’ll break down:
✅ The 5 key types of social insurance in Japan
✅ Who has to pay (and who can skip it)
✅ How much you’ll pay (with real examples)
✅ How to enroll and claim benefits
By the end, you’ll know exactly how the system works—and how to make it work for you.
Japan’s Social Insurance System Explained
Japan’s social insurance (社会保険, Shakai Hoken) is a mandatory system that provides:
- Healthcare (when you’re sick)
- Pensions (when you retire)
- Unemployment support (if you lose your job)
- Worker’s compensation (for job injuries)
- Long-term care (for elderly support)
Unlike some countries, Japan’s system is not optional for most workers. Employers and employees split the costs, and failing to pay can lead to visa problems or fines.
The 5 Types of Social Insurance in Japan
1. Health Insurance (健康保険, Kenkō Hoken)
- Covers: Doctor visits, hospital stays, prescriptions (70% off)
- Who Pays: Employees (5-10% of salary) + Employers (match contribution)
- Key Benefit: Maximum monthly medical bills are capped (based on income)
2. Pension Insurance (年金, Nenkin)
- Covers: Monthly payments after age 65
- Who Pays: Employees + Employers (split 50/50)
- Key Rule: Must pay for 10+ years to qualify
3. Employment Insurance (雇用保険, Koyō Hoken)
- Covers: Unemployment benefits (up to 90% of salary for 3-12 months)
- Who Pays: Small % of salary (about ¥500-¥2,000/month)
4. Worker’s Accident Insurance (労災保険, Rōsai Hoken)
- Covers: Medical costs + lost wages if injured at work
- Who Pays: Employers only
5. Long-Term Care Insurance (介護保険, Kaigo Hoken)
- Covers: Nursing homes, in-home care (for ages 40+)
- Who Pays: Employees + Employers (after age 40)
Who Must Join? (Full-Time, Part-Time, Freelancers)
| Work Status | Must Join? | Notes |
|---|---|---|
| Full-Time Employee | ✅ Yes | Automatic enrollment |
| Part-Time (20+ hrs/week) | ✅ Often | Depends on company size |
| Freelancer/Self-Employed | ❌ No (but must pay National Health & Pension) | More expensive |
| Student (Working Part-Time) | ❌ Usually no | Check with employer |
⚠️ Important: Some companies try to avoid enrolling part-timers—but this is illegal if you work over 20 hours/week.
How Much Will You Pay? (2024 Rates)
Example for a ¥300,000/month salary:
- Health Insurance: ~¥15,000 (¥7,500 paid by you)
- Pension: ~¥27,000 (¥13,500 paid by you)
- Employment Insurance: ~¥1,000
- Total Monthly Cost: ~¥22,000
💡 Good News: Premiums are tax-deductible!
How to Enroll & Check Your Status
If You’re Employed:
- Your company automatically enrolls you
- Check your pay slip for deductions
- Get your insurance card within 2 weeks
If You’re Self-Employed:
- Visit your local city office (区役所)
- Sign up for National Health & Pension (国民健康保険, Kokumin Kenkō Hoken)
- Pay monthly bills at convenience stores
What Happens If You Don’t Pay?
- Visa Renewal Problems (immigration checks payments)
- No Healthcare Access (full medical bills if sick)
- Pension Cuts (smaller retirement payments)
FAQ: Japan’s Social Insurance System
1. Can I opt out of social insurance?
No—if you’re eligible, it’s mandatory.
2. Do foreigners have to pay?
Yes, if you work in Japan (even on a work visa).
3. Can I get my pension money back when leaving Japan?
Yes! File for a lump-sum withdrawal (up to ¥500,000 max).
4. What if my company won’t enroll me?
Report them to the Labour Bureau—they’re breaking the law.
5. Is social insurance better than National Health Insurance?
Yes! It’s cheaper and covers more (like unemployment).
6. How do I check my pension payments?
Get a Nenkin Net account (https://www.nenkin.go.jp)