Pension and health insurance

[ichigoichie]

Hi all,
hoping for some advice/information about what to expect for my situation.

I have been in Japan for 13 years, and due to my negligence I never knew about the laws regarding pension/health insurance, I have never paid into them, or been with an employer who paid shakai. I was told from my first employer (Nova) that you need to get your own private insurance, they even had a company recommended, and I have been paying expat health insurance this whole time. I got married to a Japanese woman last month and intend to stay here long term, so I've finally started getting around to sorting out finances etc, and want to get into shakai . My current employer (a different eikaiwa) has agreed to put me on shakai, but he will reduce my pay by the amount that he will have to contribute, so that I won't cost him any more money. That is a cut too deep, which is what led me to finally do my own research and discover kokumin. I thought shakai was the only insurance/pension scheme there is.

So I want to make this right, and am thinking about going down and pleading my case and hoping for the best. Am I correct in assuming my penance will be to pay the last two years? Or is that just for one or the other? Or could it be for the total 13 years? And should I go for kokumin or accept the reduced pay for shakai? Do either of those make a difference with back pay? And assuming I pay the last two years of pension, and end up paying 20 years into pension in total over the rest of my working life, will those remaining 11 years of unpaid pension from my time spent in Japan be subtracted from my total?

I know I've messed up, and ultimately I've just got to put my hand up and accept what comes. But if anyone can share any advice or experiences it would be most appreciated.

Thanks.

[RetireJapan]

Hi

Congrats on trying to figure out your finances. It's a big step but you'll be glad down the line to have sorted it out.

Kosei nenkin (the nenkin component of shakai hoken) is more expensive but pays out more (see the last two pension posts on the blog). Kokumin nenkin is cheaper, pays out less, and gives you the option to invest more in iDeCo (tax-advantaged investment account).

If your wife doesn't work, or only works part-time (and her income is below 1.3 million) she will receive kokumin nenkin for free if you are paying kosei nenkin. This might make it worth it, even if your pay is reduced.

You will be asked to pay 2 years of kokumin nenkin. You should be able to negotiate to pay in installments.

Your eventual pension will be based on how much you pay in. The maximum is 480 months of payments.

[ichigoichie]

Thanks for the quick response.

So two years for pension back payments, and that limit also applies to health insurance? Or is health insurance going to be judged differently?

And do you know if after I pay the last two years those unpaid years (11 in total) will just be years I could have contributed but can't? And that's my penalty? Or will that hurt me down the line with extra reductions in pension payouts?

And your site is awesome, by the way. Been very educational to me so far, still a lot I need to get my head around. Thanks for the work you put into it.

Cheers.

[RetireJapan]

I don't believe you will be asked to backpay health insurance.

You will not be penalised for not paying into the pension, but of course you will only receive a final pension based on the total months you paid into the system.

Good luck! Let us know how you get on.

[mule96]

My current employer (a different eikaiwa) has agreed to put me on shakai, but he will reduce my pay by the amount that he will have to contribute, so that I won't cost him any more money. That is a cut too deep, which is what led me to finally do my own research and discover kokumin. I thought shakai was the only insurance/pension scheme there is.

This actually stinks a little bit. The laws when an employer has to apply for shakaihoken for its employees are clear, and also the share which the company has to pay and the shary which the employee has to pay. That being said, the eikwa-industry is well known for ignoring labor laws and trying to circumvent it in declaring that they are independent contractors.

[RetireJapan]

This actually stinks a little bit. The laws when an employer has to apply for shakaihoken for its employees are clear, and also the share which the company has to pay and the shary which the employee has to pay. That being said, the eikwa-industry is well known for ignoring labor laws and trying to circumvent it in declaring that they are independent contractors.

Yeah, I hate the way companies can seemingly ignore this, while individuals get cracked down on.

Having said that, my wife's English school does not enrol staff in shakai hoken because it only has three full-time employees (companies with five or less full-time staff are exempt). We're hoping to start doing that soon though.

[adamu]

This actually stinks a little bit.

I was going to say something similar, but I don't know the details, and it seems to depend on various circumstances, as RetireJapan's reply exemplifies. Worth investigating, though.

[mule96]

Just fits the topic:

Two English teachers stand up for their rights and win — a valuable lesson for anyone working in Japan

Know your rights as a language teacher

[KyushuWoozy]

Having said that, my wife's English school does not enrol staff in shakai hoken because it only has three full-time employees (companies with five or less full-time staff are exempt).

If the school is registered as a GK or KK (ie: it's registered as a company) I'm pretty sure this exemption doesn't apply. If it's registered as sole entrepreneur business it's exempt as you mention. Just want to clarify this for anyone reading this - I'm sure you've checked it our for your particular situation. I don't do the bureaucratic side of things (thankfully) but wifey spent ages checking this stuff out when we set up our GK a couple of years ago.

[RetireJapan]

If the school is registered as a GK or KK (ie: it's registered as a company) I'm pretty sure this exemption doesn't apply. If it's registered as sole entrepreneur business it's exempt as you mention. Just want to clarify this for anyone reading this - I'm sure you've checked it our for your particular situation. I don't do the bureaucratic side of things (thankfully) but wifey spent ages checking this stuff out when we set up our GK a couple of years ago.

Thanks, that is very interesting (and I did not know that). We are a sole proprietorship.

Makes sense though, we have a friend who has a small KK (she's the only employee) and she was forced to go on shakai hoken last year.