Easy-to-understand explanations of "welfare benefits" that foreigners working in Japan should know about!
For foreign residents in Japan, are you familiar with the Japanese "welfare" system? For those of you who are working or looking for work in Japan, you need to be aware of this system, as it is a system that is very relevant to you.
In this issue, we would like to explain "benefits" as clearly and simply as possible.
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What are Japan's Welfare Benefits? An easy-to-understand explanation!
Benefits are non-salary services provided by a company to its employees. In addition to salary, the company provides a variety of other services that help employees and their families make ends meet.
The purpose and role of the benefits program are as follows
- Support employees and their families to lead healthy and stable lives, both physically and mentally
- Provide a comfortable work environment and lifestyle for employees so that they can reach their full potential
- Aiming to be the company of choice for talented people by providing a better work environment and benefits
Benefits vary from company to company and have become quite important for new graduates considering employment, as more and more unique services have become available in recent years. You should definitely pay attention to this when looking for a job.
There are two types of benefits in Japan
Benefits can be divided into two main categories
- legal welfare
- non-statutory welfare program
Here is a brief introduction to the two.
1. statutory benefits
Statutory benefits are benefits that are required by law and are the minimum benefits provided by any company.
| type | cost-bearing |
|---|---|
| health insurance premium | 50% each by company and employee |
| nursing-care insurance premium | 50% each by company and employee |
| welfare annuity insurance premium | 50% each by company and employee |
| unemployment insurance premium | Company: 2/3, Employee: 1/3 |
| Workers' compensation insurance premiums | 100% paid by the company |
| Child and child care contributions | 100% paid by the company |
2. non-statutory benefits
Non-statutory benefits are benefits that a company may provide other than those required by law.
Companies are free to choose what kind of services they want to offer, and this can be expected to benefit their employees by stabilizing their lives, increasing their motivation, and making them more likely to be chosen by the best and brightest.
The types of non-statutory benefits vary widely, as follows
- Medical/Health
- Childcare and nursing care
- Celebration, condolence and disaster
- Housing
- self-development
- Improving the Work Environment
- Culture & Leisure
- property accumulation savings
- Other
Here are some examples of non-statutory benefits, divided into services that are implemented within the company and services that use services outside the company.
| Conducted within the company | Use of services outside the company |
|---|---|
| travel allowance | sports club |
| staff canteen | Travel & Hotels |
| Various leave | Medical checkups and physical examinations |
| Rent subsidies, housing allowances, company dormitories | External Training |
| Qualification Assistance | property accumulation savings |
| Book Purchase Subsidy | condolence money |
Some unique benefits
In recent years, companies have increasingly adopted and promoted unique benefits packages to attract top talent.
With an increasing number of younger generations placing more emphasis on benefits than salary, companies that employ benefits that can be effectively utilized in the work environment and for private life are attracting more and more attention.
Here are some examples of unique benefits.
- Heartbreak leave: 2 to 3 days of leave in the event of a broken heart
- Bicycle Commuting Allowance ： Encourage bicycle commuting for health reasons and receive a monthly allowance.
- Early morning yoga lessons : Provide early morning yoga lessons in-house
- Study leave: Employees may apply for leave to study for work-related purposes.
- Six-hour workday system: employees can leave the office in six hours if they have achieved their work goals.
- Support system for filial piety : Leave and transportation expenses are provided for those requiring distant nursing care.
By taking advantage of these non-salary benefits, you can expect to achieve a better quality of life and improve your work performance.
Benefits are not just for full-time employees.
In Japan, benefits are not a special program available only to full-time employees and their families. In fact, part-time workers and temporary workers are also eligible for benefits if they meet certain conditions.
This is due to the "Equal Pay for Equal Work" law. This law prohibits unreasonable differences in treatment between regular employees and non-regular workers (part-time workers, fixed-term workers, and temporary workers). In other words, if the work is equivalent to that of regular employees, they must receive the same benefits as well as wages.
Specifically, the following benefits apply to non-regular workers
- Enrollment in social insurance such as health insurance and employee pension
- Leave system (annual paid leave, maternity leave, childcare leave, etc.)
- Use of welfare facilities (company cafeteria, recreation facilities, etc.)
- Providing education and training opportunities
However, not all non-regular workers are automatically eligible for benefits. For example, part-time workers must work at least 20 hours per week to be eligible for social insurance.
Difference between benefits and bonuses
While some benefits include items that provide money, bonuses are different from benefits in that they are benefits paid in addition to regular salary.
Bonuses are paid in summer, at the end of the year, and at the end of the fiscal year, according to company regulations, and are generally in the form of several months' worth of base salary. Since bonuses increase or decrease depending on individual performance, not all employees receive the same amount of money at the same time, but there are differences among individuals.
Conversely, benefits are services and benefits provided equally to all employees, so even if your salary and bonuses are not as high, if you have a good benefits package that is beneficial to you, it can significantly improve your quality of life.
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summary
How was it?
The "welfare system" is quite important when working in Japan. In recent years, however, small and medium-sized companies have also been making a great deal of effort to attract human resources.
The point is to research if there are any benefits that would be beneficial to your living environment and your goals. No matter how many benefits are available, it is meaningless if they are all useless to you.
In particular, the priority of benefits that foreign residents need to live and work in Japan may be different from that of Japanese residents.
We encourage you to find the best workplace for you from a variety of perspectives!
Reference:RELO General Affairs & Personnel Times
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