Labor Management in Japan
The following table outlines Japan’s insurance system.
| Insurance type | Person insured | How to pay premium |
|---|---|---|
| 1.Health insurance | Employees and their families’ disease, injury, childbirth, death, etc. | Split in half between the employer and the employees and deducted from salary. Present month’s premium is paid by the employer by the end of next month |
| 2.Premium for nursing-care insurance | An insurance system for nursing-care services for the elderly. Employees aged 40 or older are covered | |
| 3. Employees’ pension insurance | An old age pension, survivor’s pension, disability pension, etc. for employees aged 65 or older | |
| 4.Employment insurance | Life security for jobless workers | Borne by both the employer and the employees and paid by the employer for one year at a time |
| 5. Industrial injury insurance | Employees’ injury, disease, disability, death, etc. during work and commuting | Paid by the employer only for one year at a time |
In most case, employees in Japan take out all the insurances above although some of the above insurance policies may be exempted from coverage. Approximately 20% of paid salary is deducted as the insurance premiums above, though depending on the situation. Therefore, when an employer pays a monthly salary of 300,000 yen, the employee actually receives 80% of it: approx. 240,000 yen.
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