Social insurance is very important as tax. It might be more expensive than income tax.

There are 4 types of social insurances in Japan.

1. Health insurance
2. Pension
3. Labor accident insurance
4. Unemployment insurance

1. Heath insurance
Japan has national health insurance system. All people who lives in Japan are enrolled health insurance system. Thus, people pays only 30% of your medical expenses.
Company will bear 50% of health insurance costs and employees bears the remaining 50% costs.

2. Pension
If your enrollment period for Japanese pension is more 25 years or more, you can receive the pensions after you become 65 years old. Same as health insurance, the company beara 50% of pension fees and employees bears the remaining 50%.

3. Labor accident insurance
This is the insurance to protect employees from job related accidents. When the employees are injured during the works, employees can receive the compensation from labor accident insurance system.

The company bear the 100% of the insurance fees. Insurance rate is very low, which is 0.3 % ~ 1% depending on the job category. Heavy penalty will be imposed on the company if the company is not enrolling in the labor accident insurance.

4. Unemployment insurance
People can receive the unemployment insurance when people lost their job.
Both company and employee bear the costs for unemployment insurance.
Company’s cost: salary ×0.7
Employees’ cost: salary ×0.4 %

Please note that that enrollment for social insurance is not an option, but legal requirement.

The company has obligation to withhold social insurance fees from employees’ monthly salary and make a payment in the following month