Occupational Injury Insurance / social security system in Japan

Procedures

Yaaay team January 23, 2024

Woman being given a massage by a massage therapist

Japan has several social insurance systems. In principle, everybody residing in Japan must take part in the medical insurance and pension insurance system.
There are four kinds of insurance systems:
Health Insurance
Occupational Injury Insurance
Unemployment Insurance
Employees' Pension Insurance

In this article, we will talk about Occupational Injury Insurance.

Who can be covered?

Occupational injury insurance (workers' compensation insurance) in Japan covers costs and compensation for work-related accidents, disability, and death. Any company, regardless of the number of employees, must have this insurance. It covers employees (and their families in the case of death) in the event of illness or injury while working or commuting to and from work. Unlike other social insurance programs, all premiums for this insurance are paid by the employer.
It should be noted that board members and executives are generally not covered by employment insurance or occupational injury insurance. This is because their contractual relationship with the company is an employment contract and not a labor contract. However, if they meet certain requirements, they are eligible for occupational injury insurance through a system called "special enrollment".

What are the benefits?

Benefits are paid for illness, injury, disability, or death caused by an accident at work or while commuting to and from work.

■Medical compensation benefits
There is no co-payment and everything is covered by the insurance as long as you receive treatment at the designated hospital. If you receive treatment at a hospital other than the designated hospital, you will be charged for the treatment as usual, but you can receive reimbursement later. Expenses for home medical care and transportation are also covered.

■Temporary Absence from Work Benefits
From the 4th day of absence, insurance covers 2/3 of the worker's lost earnings. This covers workers who are on unpaid leave.

■Injury and disease compensation pension
If a worker does not recover within 18 months, he/she is entitled to receive this pension.

■Disability Benefit Pension
Eligible to receive this pension if the worker remains disabled after treatment. There are 14 disability grades covering about 140 different disabilities. Workers receive either a lump sum or pension, depending on their situation.

Other benefits are:
■Surviving Family Benefits
■Funeral Rites Benefits
■Nursing Care Benefits
■Secondary Screening Examination Benefits

This insurance is to protect all workers

The purpose of this insurance is to protect the health and livelihood of temporary and part-time workers as well as employees.

You can find the details of occupational injury insurance at the following URL.
Ministry of Health Labour and Welfare, Labour Standards Bureau,
Industrial Accident Compensation Department, Compensation Division:　
https://www.mhlw.go.jp/new-info/kobetu/roudou/gyousei/kantoku/dl/161108-02.pdf