Workers' Accident Compensation Insurance Japan, Complete Guide

In Japan, workers' accident compensation insurance is a mandatory coverage for employees. It's designed to provide financial support in case of work-related injuries or illnesses.

The insurance covers medical expenses, lost wages, and rehabilitation costs. This means that employees can receive compensation for the time they're unable to work due to their injury or illness.

The Japanese government requires employers to enroll their employees in this insurance program. This ensures that workers have access to necessary medical care and financial support.

The insurance coverage typically includes medical expenses, such as hospital bills and medication costs.

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Workers' accident insurance in Japan is a government-run program that covers expenses and compensations for work-related accidents, disability, or death. Any business that hires even one employee must enroll in this insurance.

Employers pay 100% of the insurance premium at the start of the fiscal year. This is a mandatory requirement, and employers are obligated to report any work-related accidents to the Labor Standards Inspection Office.

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Workers' accident insurance covers a range of benefits, including medical expenses, leave allowance, disability compensation, compensation for the bereaved family, and support for the insured person's return to society.

Here are some scenarios where workers' accident insurance applies:

These benefits are designed to support employees who are injured or become ill due to work-related reasons or commuting. By understanding what workers' accident insurance covers, employees can feel more secure in their jobs.

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In Japan, workers' accident compensation insurance provides financial assistance to employees who get injured on the job or while commuting.

The insurance covers any illness, injury, disability, or death resulting from an accident caused by work or commuting.

This means that if you're involved in an accident while on your way to or from work, your employer's insurance will help cover the costs, giving you peace of mind and financial security.

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Benefits are paid for any illness, injury, disability or death incurred as a result of an accident caused by work or while commuting.

You can receive medical treatment at designated hospitals without paying any costs yourself, as the insurance will cover all expenses. If you visit a non-designated hospital, you'll be charged as usual but can receive a refund later.

If a worker has not recovered within 18 months, they may be eligible to receive the Illness or Injury Compensation Pension.

There are 32 designated medical facilities nationwide where employees don't need to pay medical expenses for treatment related to work or commuting.

The Labor Standards Inspection Office handles claims for medical compensation benefits, and you'll need to submit a designated claim form to them.

From the fourth day of missed work onward, the insurance covers two-thirds of a worker's lost earnings.

Disability remains after treatment, workers may be eligible to receive the Disability Pension Benefit, which has 14 levels covering around 140 types of disability.

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If you've lost a loved one due to a work-related accident, there is help available. The Bereaved Family Compensation Benefit is a form of support provided to family members who relied on the deceased worker for financial assistance. This benefit acknowledges the financial burden that comes with losing a primary breadwinner.

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If your business hires even one employee, you must enroll in workers' accident compensation insurance, regardless of their employment status.

However, some businesses and employees are not covered by workers' accident compensation insurance. Government office workers, government-owned businesses, and those insured by seamen's insurance (other than those insured by voluntary disease continuation) are not covered.

Contractors or board members with representative or administrative rights are also not covered, although board members who work under a representative and receive wages can be covered.

Most freelancers are excluded from insurance coverage, but a special voluntary enrollment system exists for them.

Here are some examples of sole proprietors/freelancers who can enroll in this voluntary insurance: taxi drivers, carpenters/construction workers, foresters, and fishers.

To enroll in the special enrollment system, you must do so through a proxy, such as the industries' respective unions or relevant agencies.

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The cost of workers' accident compensation insurance in Japan can be a significant expense for employers. Premiums are calculated based on the company's payroll, with rates varying depending on the industry and location.

Employers in high-risk industries, such as construction or manufacturing, typically pay higher premiums. For example, the premium rate for the construction industry is around 2.5%, while the rate for the manufacturing industry is around 1.5%.

The enrollment process for workers' accident compensation insurance is relatively straightforward. Employers are required to enroll their employees in the system, which typically involves providing personal and employment information.

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Calculating workers' compensation insurance premiums is a straightforward process. You can use the formula: (total annual wage of all employees) x (insurance premium rate) = workers' accident insurance premiums.

The total employee wages are calculated by adding up the monthly wages and bonuses paid each month. You can find a list of insurance premium rates by industries on the MHLW site, but be aware that the rates haven't changed since 2018.

Insurance rates differ by industry because certain businesses are more prone to work-related accidents than others. If you're a continuing business, you'll pay the year's estimate of the workers' accident insurance premiums beforehand, with the difference settled at the end of the fiscal year.

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You'll need to file a report within 50 days of any employee hires or retirements during the fiscal year, and if applicable, the difference will be refunded to you. Premium rates are reevaluated every 3 years for establishments with 100 or more employees, according to the number of reported work-related accidents.

The labor bureau will notify you when a change has been made to the premium rates, so you don't need to make an application. You can find forms for filing and paying insurance premiums on the Labor Insurance Information Center site.

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If your business hires even one employee, you must enroll in workers' accident compensation insurance. This applies to full-time, part-time, and day laborers, as well as employees with variable employment status.

Some businesses and employees are not covered by workers' accident compensation insurance, including government office workers, government-owned businesses, and those insured by seamen's insurance.

Contractors or board members with representative or administrative rights are also not covered, although board members who work under a representative and receive wages can be covered.

Most freelancers are excluded from insurance coverage, but a special voluntary enrollment system exists for them. This system is available for sole proprietors/freelancers like taxi drivers, carpenters/construction workers, foresters, and fishers.

To enroll in workers' accident insurance, you'll need to submit the following documents to the local Labor Standards Inspection Office:

The submission deadline is within 10 days from the establishment date of the insurance relationship, except for the Declaration of Estimated Labor Insurance Premiums, which must be submitted within 50 days. However, it's generally recommended to submit all documents and pay insurance premiums within 10 days.

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In cases of work-related accidents, compensation insurance provides coverage for medical expenses and lost wages. This is a crucial aspect of workers' accident compensation insurance in Japan.

If an employee suffers a work-related injury, they are entitled to receive medical treatment and compensation for their lost wages. This includes coverage for hospitalization, surgeries, and rehabilitation costs.

For accidents that occur during commuting to or from work, the insurance also provides coverage, as long as the accident is work-related. This means that even if the accident happens outside of the workplace, the employee may still be eligible for compensation.

If you're an employee in Japan, you might be eligible to receive Rosai, a type of compensation for work-related injuries. This can include commuting accidents, which are a common occurrence in Japan's busy cities.

To be considered a commuting accident, you must be traveling to or from work on a regular route. However, if you deviate from this route for daily necessities, such as buying food, and get back on track soon after, the injury may still be considered a commuting accident.

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In Japan, there are various types of Rosai, including those related to electronic book preservation and having a side job. If you're an engineer or specialist in humanities or international service, you may be eligible for a specific type of visa.

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If you're changing medical institutions due to transfer, surgery, or other reasons, you'll need to notify the relevant authorities.

You'll need to fill out a specific form, either Form No. 16-4 for commuting disasters or Form No. 6 for work-related disasters.

All treatment costs must be paid in full at the counter until the necessary documents are submitted to the clinic.

Once you've submitted the documents and they're registered, the refund of your co-payment will be processed.

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