Japan Statutory and Private Employee Benefits, 2023 Update
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Japan Statutory and Private Employee Benefits Overview
The Japanese social security system is designed to assure a minimum standard of living for its citizens, as well as protection from social and economic risks. It consists of the following components: a public pension system, health services, personal social services for the elderly and the disabled, family policy to support working women, employment of senior workers, and public assistance. Japan follows a multi-tier pension system, which includes public and private pension schemes. The public pension and healthcare systems are comprehensive, covering all citizens of the country. The country’s healthcare system is characterized by a fee-for-service practice and the free choice of healthcare providers. However, personal social services and family policy are relatively underdeveloped social security fields.
The Japan employee benefits report provides in-depth industry analysis, information, and insights into employee benefits, an overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Japan.
Key Regulations | · Employment and Labor Laws and Regulations, 2020
· Labor Union Act · Labor Contract Law · Industrial Safety and Health Act · The Employment Security Act · Work-Style Reforms Law |
Key State and Compulsory Benefits | · Retirement Benefits
· Death in Service · Long-Term Disability Benefits · Short-Term Sickness Benefits · Medical Benefits · Workers’ Compensation Insurance · Maternity and Paternity Benefits · Other Benefits |
Key Private Benefits | · Retirement Benefits
· Death Benefits · Medical Benefits · Disability Benefits · Accidental Death and Dismemberment Benefits · Other Benefits |
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Employee Benefits Regulations in Japan
The various employee benefits laws that are applicable in Japan are:
- Employment and Labor Laws and Regulations, 2020
- Labor Union Act
- Labor Contract Law
- Industrial Safety and Health Act
- The Employment Security Act
- Work-Style Reforms Law
For more insights on employee benefit regulations in Japan, download a free report sample
Japan Employee Benefits Segmentation by State and Compulsory Benefits
The key state and compulsory benefits offered by employers in Japan are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
Retirement Benefits: The pension system in Japan is based on two pillars, the first pillar is a Mandatory National Pension System (NPS) (Kokumin Nenkin – KN), and the second pillar is a Mandatory Employees’ Pension Insurance (EPI) for private employees and Mutual Aid Pensions (Kyosai Nenkin) for government employees. These two constitute the public pension. Special employment-related systems are prevalent for civil servants. The National Pension Act (NPA) (Act No. 141 of 1959) and the Employee’s Pension Insurance Act (EPIA) (Act No. 115 of 1954) govern public pensions.
Workers’ Compensation Insurance: Japanese workmen’s compensation insurance is a part of the social insurance system and is regulated by the Workmen’s Accident Compensation Insurance Act, which was last amended in 2012. The Work Injury Compensation Department of the MHLW’s Bureau of Labor Standards manages this program through prefectural Labor Bureaus and local Labor Standards Inspection Offices. Under this scheme, coverage is provided for temporary disability, medical care, physical disability, disease, illness, death benefit, and funeral expenses.
Maternity and Paternity Benefits: Maternity benefits are provided under the Employee’s Health Insurance Scheme in Japan. The benefit paid depends on the wage class. The benefit paid is 66.67% of the average daily basic wage in the last 12 months. If the insured receives wages, then the benefits are partially reduced or suspended.
To know more about state and compulsory employee benefits in Japan, download a free report sample
Japan Employee Benefits Segmentation by Private Benefits
The key private benefits offered by employers in Japan are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
Retirement Benefits: In Japan, the following offers supplementary retirement benefits: Employees’ Pension Funds (EPF), defined benefit corporate pension schemes can be either contract-type or fund-type, corporate-type defined contribution plans, and cash balance plans. Generally, the pension contract between employers and employees determines the occupational pension plan terms.
Medical Benefits: In Japan, private medical group insurance covers basic as well as additional healthcare benefits. Employers provide medical benefits to employees by subscribing to group medical insurance plans. Few large employers also provide specific insurance plans to cover critical illnesses or major diseases. Some group life insurance policies also cover medical benefits.
Disability Benefits: In Japan, employers provide short-term disability benefits to employees through income-guarantee insurance plans and comprehensive injury insurance plans. In the case of leave taken due to incapacity to work, compensation within the fixed range is paid based on the rules stipulated in the policy. The plan provides income replacement up to 66.67% of the salary, including rehabilitation and return-to-work assistance benefits.
To know more about private employee benefits in Japan, download a free report sample
Scope
This report provides a detailed analysis of employee benefits in Japan –
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
- It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, long-term care benefits, leaves and holidays, and private benefits.
- It highlights the economic and regulatory situations relating to employee benefits in Japan.
Key Highlights
• The Ministry of Health, Labor, and Welfare (MHLW), Health Policy Bureau, Labor Standards Bureau, Employment Security Bureau, and Equal Employment, Children and Families Bureau are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
• In Japan, employers provide voluntary retirement benefits to their employees through Employees’ Pension Funds (EPF), Defined benefit corporate pension schemes, Corporate type defined contribution plans, and Cash balance plans.
Reasons to Buy
- Make strategic decisions using in-depth information related to employee benefits in the country.
- Assess employee benefits of the market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in the country.
- Gain insights into key organizations governing the employee benefits market, and their impact on companies.
Table of Contents
Table
Figures
Frequently asked questions
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What are the key regulations guiding employee benefits in Japan?
The key regulations guiding employee benefits in Japan are Employment and Labor Laws and Regulations, 2020, Labor Union Act, Labor Contract Law, Industrial Safety and Health Act, The Employment Security Act, and Work-Style Reforms Law.
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What are the key state and compulsory benefits for employees in Japan?
The state and compulsory benefits for employees in Japan are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
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What are the key private benefits for employees in Japan?
The key private benefits offered by employers in Japan are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
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