Business
Japan — Business: Social Security
Japan's employer social-insurance obligations span two administrative categories covering four programs: Social Insurance (shakai hoken) — Health Insurance and Welfare Pension, both split 50/50 between employer and employee — and Labor Insurance (rodo hoken) — Employment Insurance (employer pays a higher share than the employee) and Workers' Accident Compensation Insurance (100% employer-funded). Enrollment in shakai hoken is mandatory for employees working substantial hours at a company, including most foreign employees, regardless of nationality. Long-Term Care Insurance is an additional mandatory layer for employees aged 40-64. A new Child Rearing Support Contribution launched in April 2026, currently small (0.23% total) but planned to grow to ~0.4% by 2028, funding expanded childcare-leave benefits nationally.
Key facts
- Two categories, four programs: Health Insurance + Welfare Pension (Social Insurance, 50/50 split) and Employment Insurance + Workers' Accident Compensation (Labor Insurance, employer-weighted/100% employer).
- Enrollment is mandatory for qualifying employees regardless of nationality.
- Long-Term Care Insurance is mandatory for employees aged 40-64.
- New Child Rearing Support Contribution (from April 2026): 0.23% total, split 50/50, rising toward ~0.4% by 2028.
Timelines
- Child Rearing Support Contribution launch: April 2026
- Child Rearing Support Contribution projected rate: ~0.4% by 2028
Common mistakes
- Assuming foreign employees are exempt from mandatory shakai hoken enrollment — nationality is not a factor in eligibility.