Employees' Pension Insurance plan 厚生年金

Employees’ Pension insurance plan

The Employees’ Pension Insurance Plan "厚生年金" covers the following people:
1. regular employees working at applicable companies
2. non-regular employees who meet certain criteria, working at relatively larger companies
3. spouses of the aforesaid insureds, financially depending on the insureds

The Employees' Pension insurance act defines people who fall into the item 1 and the item 2 mentioned above as the Type 2 insureds, and the spouses, mentioned in the item 3, as the Type 3 insureds.

The concept of the Type 3 insureds is unique in the Japanese public insurance system. This category is implemented for the sake of the "full-time housewives". Some criticize this category is behind the times and the full-time housewives in the traditional family model should not receive such a favorable treatment.

〔In Japanese〕
1. 適用事業所に努める正規従業員
2. 大企業に勤める非正規従業員で、一定の基準を満たす者
3. 前2号の加入者の配偶者で、これら加入者に扶養されている者


Enrollment Procedures

The enrollment procedures in the Employees' Pension insurance plan for the Type 2 insureds are conducted by the applicable employers, similarly to the procedures of the Social health insurance plan. The employers are expected to distinguish the eligible persons among the employees and submit appropriate reports to the public pension office.
In case the Type 2 insureds have spouses qualified as the Type 3 insureds, the Type 2 insureds have to submit prescribed forms to the employers and the employers accordingly submit the corresponding reports to the government bureau.

[In Japanese]

Insurance premiums

premiums on Type 2 insureds

The premiums amount for this plan imposed on the Type 2 insureds is calculated by multiplying the prescribed rate to the salaries and bonuses amount of the respective insureds. Strictly speaking, the salaries amount subject to the premiums rate is a standardized amount which is determined based on the salary amount paid in the 3 months period from every April. Anyway, the premiums amount is figured out solely based on his/her salaries and bonuses level.
A half of the premiums are borne by the employers. This is common to the premiums of the Social health insurance plan. Indeed, the Employees' pension insurance plan and the Social health insurance plan have many points in common. With the fifty-fifty split of the premiums burden, the Employees' Pension Insurance plan are regarded more favorable for the insureds.

The present rate of the premiums is 18.300% (in general. Those for sailormen or some others are a little higher.), since September 2017. As the premiums burden is split into halves, your portion is 9.150%. The premiums are levied by a month. The premium for a month is supposed to be withheld from your monthly salary paid in the succeeding month.

〔In Japanese〕
そして、この保険料の50%が雇い主によって負担されます。 これらは厚生年金と社会保険との共通点です。実際のところ厚生年金と社会保険には多くの共通点があります。保険料負担が雇い主と折半とされていることから、厚生年金保険は、国民年金よりも加入者にとって有利な制度であると考えられています。
現在の厚生年金保険料率は、2017年9月以降18.300%(通常の場合。船員などについては、より高い料率となっています。)とされています。 折半負担ですので、貴方の負担分は9.150%です。厚生年金保険料は月ごとに課され、当月分の保険料は、その翌月に支払われる給与の額から天引きされることとなっています。

premiums on Type 3 insureds

The Type 3 insureds are not required to pay any premiums even though they gain the qualification as the potential beneficiary of the public pensions.
It is controversial. Some say this treatment is reasonable for maintain traditional sound customs of households and preserve housewives supporting her husbands without cash flow. Others say the Type 3 insureds and their husbands/wives are too much favored in the society where many people are unmarried due to the economic problems.

[In Japanese]