Learn about the Employee Benefits in Japan

Getting placed and settled in Japan is a dream come true for many. Japanese companies are globally recognized and offer world-class exposure and experience, vital for an ambitious career. A key point here is that Japanese companies truly care for their employees and provide a wide range of benefits to ensure that the employees are satisfied and feel secure in their job.

Look out for these employee benefits when working for a company in Japan.

  1. Health Insurance – All Japanese employees are covered by a blanket insurance policy known as Social Insurance. This comes under the National Universal Health Care System prevalent in Japan. Employees with a Social Insurance Card have access to all medical institutions in the country and are required to pay only 30% of the standard costs.
  2. Pension – The Employee Pension System in Japan provides pension benefits to employees who have contributed at least 25 years of service up to the age of 60. The pension system has no standardized payment scheme and operates on an individual basis. The average payment ranges between 1,00,000- 2,50,000 JPY based on the monthly salary drawn last.
  3. Paid Vacation – The Japanese Labor Law stipulates a minimum amount of paid leave for employees. This amount varies as per the seniority level of the employee. Employees can claim up to 2 years of unpaid leaves from the company.
  4. Sick Leaves – In case of a medical emergency, employees in Japan can make use of their paid leaves to avail for a holiday. However, some Japanese companies go out of their way to provide more sick leaves to their employees as a special benefit.
  5. Maternity and Childcare Leave – Japanese companies provide up to 6 weeks of leave before childbirth up till 8 weeks of maternity leave post-delivery. Childcare leave begins post maternity leave and applies to both the mother and father. It can last up to a year. In this case, the compensation aspect is taken care by the Insurance policy and the company is required to pay a certain amount as a contribution. The entire compensation, however, does not exceed 2/3rd of the base salary.
  6. Business Expenses – Business expenses are fully reimbursed by the company. Expenses that are not related to work are usually taxable.
  7. Annual Health Check Up benefit – Employees covered by the Social general insurance system “Kyokai Kenpo” are entitled to a benefit of an annual health check up in any of the hospitals designated under “Kyokai Kenpo”. Cost of this checkup to be paid by the employee amounts up to JPY 7,000.

Japanese companies actively work towards stable work culture and happy employees. This makes Japan a good place to settle and work in. Japan is also the third-largest economy in the world, holding a tremendous scope of advancement and expansion, making it the best place to kick start your career. We hope this article helped you understand the employee benefits available in Japan. All the best!

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