A Comprehensive Guide to Unemployment insurance in Japan

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An adult woman marks job listings in a newspaper while sitting indoors, highlighting job search activity.
Credit: pexels.com, An adult woman marks job listings in a newspaper while sitting indoors, highlighting job search activity.

In Japan, unemployment insurance is mandatory for most employees, with a few exceptions.

To be eligible, you typically need to have worked for at least 20 days in the past year.

The government pays a significant portion of unemployment benefits, with the employer covering a smaller percentage.

The standard duration of unemployment benefits in Japan is 12 months, but this can be extended in some cases.

Eligibility and Requirements

To be eligible for unemployment insurance in Japan, you generally need to have paid employment insurance for at least one year. This is part of the social insurance benefits, which include pensions and health insurance.

Your employer's bankruptcy or termination of employment requires a minimum of six months' employment insurance payment in the last year. If you're unsure, check the provided document.

To enroll in unemployment insurance, you must work at least 20 hours per week and expect to be employed for at least 31 days.

Who Is Eligible

Adult man working from home on a bed with tablet and laptop, wearing pajamas.
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In Japan, anyone who has been employed and paid employment insurance for one year or more is generally eligible to apply for unemployment insurance.

To qualify, you typically need to have been paying employment insurance for at least six months during the last year if your employer went bankrupt or you were fired.

Full-time employees have their employment insurance contributions automatically deducted from their salary each month.

If you're a freelancer, agency worker, or part-time employee, you'll need to pay into the scheme independently.

Foreign nationals who work in Japan and hold a valid work visa may be eligible for unemployment insurance, provided they've contributed to the scheme for a reasonable amount of time.

To receive substantial benefits, you'll typically need to have contributed to the scheme for a minimum of 12 months within the preceding two years.

If you're unsure about your eligibility, it's best to check the relevant document or consult with Hello Work.

A different take: Employment Gap Year

Verification of Status

Man sitting at desk facing unemployment
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To continue receiving unemployment insurance payments, you'll need to show proof of applying to at least two jobs per month.

You'll be required to return to Hello Work every 28 days to discuss your job search and fill out a form indicating which jobs you've applied for.

This appointment is difficult to reschedule, so it's best to pick a day of the week that you know you'll be free until you get a job.

Related reading: Job Interview

System and Process

Japanese unemployment insurance is a "user pays" system, meaning it's paid for by contributions from both the employer and employee.

The system is different from taxpayer-funded systems in countries like the UK, New Zealand, or Australia.

To apply for unemployment insurance, you'll need a document called the 'rishokuhyo' issued by your employer.

If you don't have this document, you can consult Hello Work, which can confirm your eligibility and help with the application process.

You'll also need your My Number, which is a unique identification number required for employment insurance procedures.

You can find your My Number on your My Number Card or My Number Notification Card, or by visiting the municipal office where your certificate of residence is registered.

Payment and Benefits

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In Japan, unemployment insurance is administered by the Ministry of Health, Labour and Welfare.

The payment period for unemployment insurance in Japan is generally 12 months, but can be extended to 24 months in some cases.

You can apply for unemployment insurance benefits at a local employment security office, which is usually located near your home.

To be eligible for benefits, you must have worked for at least 20 days in the past 3 months, and have a monthly income of at least ¥15,000.

Benefits are calculated based on your average monthly income over the past 6 months, and are paid out at a rate of 50-60% of your average monthly income.

The application process typically takes 1-2 weeks, and benefits are usually paid out within 3-4 weeks after application.

You can also receive a lump sum payment of ¥10,000 to ¥20,000 when you first apply for benefits.

Employment and Eligibility

In Japan, unemployment insurance is a government benefit scheme managed by the Japanese Ministry of Health, Labour and Welfare. It aims to support Japanese residents who are unemployed and actively seeking work.

Credit: youtube.com, Unemployment Benefit Apply Procedures||Japan

To be eligible for unemployment insurance, you generally need to have been employed in Japan and paid employment insurance for one year or more. If your employer went bankrupt or you were fired, you need to have been paying employment insurance for at least six months during the last year.

There are two primary unemployment insurance schemes within Japan: Shitsugyou Hoken and Rousai Hoken. However, Shitsugyou Hoken is the most common form of unemployment insurance in Japan.

To claim Shitsugyou Hoken, a worker must have contributed to the scheme for a minimum of six months. However, to receive substantial benefits, a recipient will typically need to have contributed to the scheme for a minimum of 12 months within the preceding two years.

Foreign nationals who work in Japan are entitled to claim both Shitsugyou Hoken and Rousai Hoken, provided they hold a valid work visa and have contributed to the scheme for a reasonable amount of time.

Here's a summary of the eligibility requirements for Shitsugyou Hoken:

  • Contributed to the scheme for at least six months
  • Contributed to the scheme for at least 12 months within the preceding two years for substantial benefits
  • Hold a valid work visa (for foreign nationals)

Current Issues and Overview

Credit: youtube.com, How Japan’s Employment Insurance Works | Unemployment, Childcare & More

The current state of unemployment insurance in Japan is a complex issue. The system was once financially balanced, thanks to a legendary low unemployment rate until the 1980s.

However, a rapid increase in unemployment since the 1990s has left the system in the red. This shift has forced the government to implement reforms.

The 2001 Reform attempted to address the issue by separating recipients of the insurance based on the reason for termination. But the effects of this reform are still unknown.

Old age employees are still favored in many ways, such as through the Old Age Continuous Employment Benefits and the insured period categorization of the Unemployment Benefits.

Thelma Wilderman

Assigning Editor

Thelma Wilderman is a seasoned Assigning Editor with a passion for curating compelling content. With a keen eye for detail and a deep understanding of industry trends, she has successfully guided numerous projects to publication. Her expertise spans a range of topics, from the latest developments in project management careers to innovative approaches in business and technology.

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