Please tell me about the procedure for labor insurance (workers’ accident insurance, employment insurance).
When work injury insurance applies to the Japanese company or branch office, you will need to submit a notification for the establishment of work related to work injury insurance to the appropriate labor standards monitoring office. Afterwards, you need to report and pay an estimated premium, which is the estimated amount of workers’ compensation premium from the establishment date of the insurance to the following March 31, to the Labor Standards Inspection Office or the Prefectural Labor Bureau.
In case of employment insurance applications, after doing the above procedure, submit a notice of employment insurance for application of business establishment and a notification for acquisition of the insured person’s qualification of employment insurance of those participating in employment insurance to the public job security office (Hello Work).
★ Explanation ★
1. Workers’ Accident Insurance and Joining Procedure
Workers’ accident insurance is formally called Workers’ Accident Compensation Insurance. It provides insurance benefits necessary to protect workers and survivors, such as when a worker is injured due to a business event or through commuting, gets sick, is disabled, or unfortunately dies. There is an obligation to participate in this if you employ at least one worker, including part-timers.
In addition, because workers’ compensation insurance is guaranteed when a worker encounters an accident, the executive is excluded.
Fill in the address, name, etc. of the place of business in the notification of establishment of insurance relationship and submit it to the Labor Standards Inspection Office. The date for this will be the day that falls under the applicable place of business (the day when a worker is hired). Moreover, although attached documents are not particularly determined, it is common to attach a registered copy as a proof that the establishment exists.
When the procedure is completed, the work insurance number will be assigned to the place of business, and a copy of the insurance establishment report will be returned. You will use it for the enrollment procedure of the employment insurance to be mentioned later.
2. Employment Insurance and Joining Procedure
Employment insurance ensures the life and employment of workers and to promote re-employment when workers become unemployed or when it becomes difficult for them to continue working such as when they go on a parental leave. If you hire workers who meet certain requirements, you are obliged to join.
In addition, workers who meet all the following requirements basically need to have employment insurance.
① The designated working time per week is 20 hours or more
② There is a likelihood of more than 31 days of employment
After the procedure for establishing the labor insurance relationship is completed, a notice for employment insurance application establishment and a notice for the acquisition of the insured person’s qualification of employment insurance of those participating in employment insurance are submitted to the public job security office (Hello Work) within its jurisdiction. In doing so, attach a copy of the labor insurance relationship establishment notification.
If you have worked full time in Japan, an employment insurance number will be assigned. It is listed on the previous job change slip, etc. but if you do not know about it, you can search at Hello Work where you enter the company name and term of the previous job in the remarks column. It is also effective to attach a copy of your resume.
If you are filing a notification for someone who is not of Japanese nationality, you will need to fill in the name in Roman letters, nationality, status of residence, period of stay, etc. You will also be asked to fill out the residence card because it serves as a notice on the employment of the foreigner.
When the employment insurance entry procedure is completed, the establishment number will be assigned to the establishment and the employment insurance application establishment ledger will be returned.
3. Labor Insurance Premium
Labor insurance premiums are in the form of the so-called advanced payment, which pre-assesses declarations and payments of insurance premiums in that year in advance, to be settled in the next fiscal year’s declaration. Therefore, after establishing a labor insurance relationship, it is necessary to report and pay the prospect of the labor insurance premium for that year.
(1) Workers’ Accident Compensation Insurance
Workers’ accident insurance is calculated by multiplying the total wage paid to workers in that year by the premium rate. Its rates are divided into 2.5 to 1,000 / 88 depending on the type of business (as of April 1, 2017). Job types that are prone to work-related accidents (generally dangerous job types) tend to have their rates set higher, and the employer pays all workers’ compensation premiums.
(2) Employment Premium
The employment insurance rate is set according to the type of business, as shown in Chart 7-2 (as of April 1, 2017).
Chart 7-2 Employment Insurance Premium Rates
|Business Type||Insurance Rate||Employer’s Share||Individual’s Share|
|Agriculture, Forestry, and Fisheries
Sake Production Business
|Business Type||General Businesses|
|Business Type||Agriculture, Forestry, and Fisheries Sake Production Business|
|Business Type||Construction Business|
(3) Yearly revision and calculation
Both the workers’ compensation insurance rates and the employment insurance rates may be revised each year. Above rates are for 2016。
Workers ‘compensation premium is multiplied by the worker’s compensation premium rate for all workers’ wages, but as the employment insurance premium multiplies the employment insurance premium rate only for the wages of workers who join employment insurance, it is necessary to be careful when calculating the premium.
In addition, employment insurance premiums are exempted for workers who are over 64 years old as of April 1 of the corresponding year.
(4) Payment of labor insurance premiums
When the procedure for labor insurance filing is completed, the labor insurance payment notice will be returned, and payment will be made at the nearest financial institution.