Don’t lose your chance of getting benefits! Japan’s Unemployment Insurance system
- Unemployment Insurance is the system to support your income in the unemployment period until you find your new job.
Foreign Nationals in Japan are also applicable to this insurance system if you fulfill some required conditions. When a person has to leave their job while holding a working visa, they sometimes face financial issues since they cannot find a different part-time job during the job transferring period.Understanding the Japanese Unemployment Insurance system is critical for looking for a new job without worrying about minimal monthly expenses. Here in this article, we will explain the “Unemployment Benefits (Basic Allowance)” and “Reemployment Benefits (Reemployment Allowance)” in the Unemployment Insurance system, which some Foreign Nationals are also eligible to apply. Unemployment Insurance (Shitsu-Gyo Hoken) is one of Japan’s public insurance system official name known as Employment Insurance (Koyo Hoken)
Employment Insurance is provided to the insured when they become unemployed to find new jobs and be employed as quickly as possible.
Enrolling in Employment Insurance is compulsory when workers, including Foreign Nationals, start their job in Japan. Therefore, Foreign Nationals also have the right to claim insurance by matching several conditions.
Unemployment Insurance
“Hello-Work”
“Hello-Work” (pronounces more like “Hallo-Wauk” in Japanese Katakana reading) is the place where you apply for Unemployment Insurance. Hello-Work is the Public Employment Security Office locating 500 branches all over Japan.
Hello-Work offers various services such as Recruitment support, Recruitment consulting, or Employment Insurance application for job seekers.
Hello-Work's website
Unemployment Benefits (Basic Allowance)
Unemployment Benefits (Shitsu-Gyo Hoken) secure basic income and support job seekers’ quick job transferring from unemployed conditions. Company reasons (bankruptcy, restructuring, etc.) and personal reasons (job transfer, looking for better conditions, etc.) for leaving your profession are eligible for the benefit payment.
Requirements for Basic Allowance payment
Specific requirements have to be fulfilled upon receipt of Benefits.
1.The person is in“the state of unemployment.”
“State of Unemployment” means that positive efforts of the person as well as the Hello-Work have not been able to find a job even though the person applied for employment, and has a positive will to get jobs and the ability to take up a position at any time.
A person who is in the following status is not applicable.
- Person who is not able to work immediately due to illness or injury.
- Person who cannot work immediately due to pregnancy, giving birth, or child care.
- Person who cannot work immediately due to household care with events such as marriage.
2.Period of insurance paid
In two years preceding the day of his or her becoming unemployed, months each of which has more than 11 days as the bases of wage payment aggregate twelve minimum and the person was covered by the employment insurance for at least twelve full months.
Nevertheless, in the case of specifically qualified beneficiaries (who are forced to leave their jobs due to bankruptcy, discharge, etc.), in a year preceding the day of his or her becoming unemployed, months each of which has more than 11 days as the bases of wage payment aggregate six minimum and the person was covered by the employment insurance for at least six full months.
3.Job-seeking activities during the application period
When you are in the application period for Unemployment Insurance, you should carry out “Job-seeking Activity” at least more than twice within four weeks. “Job-seeking Activity” is as follows.
Definition of the “Job-Seeking Activity”
- Application to the recruitment
- Attending the recruitment consulting held by Hello-Work or authorized private and public organizations. Receiving recruitment offers or attending employment classes or seminars.
- Taking examination of a particular national certified exam or qualification test for a certificate.
Only accessing or searching the recruitment information or having an introduction from your acquaintance will not be regarded as “Job-Seeking Activity.”
4.Status should be “Unemployed” during the “waiting period”
Basic Allowance is receivable after completing the application at the Hello Work. However, the payment is not immediate.
Seven days after your first visit for application to the Hello Work, called the “waiting period,” is excluded for the payment of your Basic Allowance.
Furthermore, if your reason for leaving the job was due to your own reasons without a just cause, Basic Allowance is not paid for further two months from the expiration of the waiting period. This is called “restriction on benefit payment.”
Period of Basic Allowance
The Unemployment Insurance payable to you is called basic Allowance.
The period of this basic Allowance (Duration of Benefits) to be received depends on “the reason why the person lost employment,” “the age when the person lost employment,” and “the period during which the person was insured.”
Duration of Benefits
Unemployed due to the person’s own reasons
Unemployed due to the company’s reasons (who are forced to leave their jobs due to bankruptcy, discharge, etc.)
Amount of Basic Allowance
Amount of the Basic Allowance defined by “Duration of Benefits × Daily Basic Allowance.”
“Daily Basic Allowance” is the amount of Allowance paid to you per day. The amount is defined by the daily wages in six months preceding the day of separation from employment.
Daily Basic Allowance
Duration of Benefits （Total wages for 6months before unemployment÷180days）× Allowance Ratio
Furthermore,“Daily Basic Allowance”and “A daily amount of wages” have maximum and minimum limits.
A daily amount of wages (in six months preceding the day of job separation)
A daily amount of Basic Allowance
Reference of daily Basic Allowance according to the above is as follows.
Application procedure for Basic Allowance
The application of the Basic Allowance procedure is as follows.
- After your job separation, you must visit the Hello Work office with the required documents to apply for re-employment.
- Commencing your Unemployment application and attend the Guidance on unemployment.
- Waiting period (Restriction on Payment of Benefit)
Two months + 7 days in case your unemployment reason was personal, 7 days in case of dismissal, etc.(company reason). - Apply for Unemployment Verification at the Hello Work on Verification date (once in four weeks).
- The benefit amount will be transferred to your account after five business days from the Verification Date.
Re-employment Allowance
“Reemployment Allowance” is the benefit you receive in fixed condition when re-employed during the Unemployment period. The system is meant to encourage unemployed people for instant re-employment.
Condition to receive the Re-employment Allowance
Following conditions have to be fulfilled to receive the Re-employment Allowance.
- After the recognition of unemployment to the day preceding the day of your employment, the number of remaining days to the expiry of the benefit-receivable period amounts to more than 1/3 of the prescribed term of benefit and also amounts to 45 days or more.
- You got the job after“the waiting period”(seven days) expires.
- You got a stable position which ensures your continuous employment of longer than one year.
- You were not re-employed by the employer (including the business proprietor of an affiliated establishment) by whom you had been employed before the loss of employment.
- If “restriction on benefit payment” is applied to you due to a reason for loss of employment pertinent to the recipient’s qualification, you got a job referred to by the Hello Work in one month following“the waiting period.”
- You have not been provided with a “re-employment allowance” or“normal employment outfit allowance” for your employment in the past three years.
- You were not employed by the employer who had unofficially decided to employ you before“the day on which the recipient’s qualification was given.”
- You have obtained the qualification of an insured of the employment insurance.
Amount of Re-employment Allowance
Re-employment Allowance amount varies from the remaining days of the benefit-receivable period.
- If the remaining days are more than 2/3
Re-employment Allowance
= Amount of daily basic Allowance × the remaining prescribed term of days to receive benefit × 70% - If the remaining days are more than 1/3
Re-employment Allowance
= Amount of daily basic Allowance × the remaining prescribed term of days to receive benefit × 60%
Application procedure ot Re-employment Allowance
The application shall proceed at the Hello-Work office. The application should be made within one month from the date you have obtained employment.
- Submit an Employment Certificate issued by the re-employed company to Hello Work.
- Receive “Re-employment Allowance Application form” from Hello Work.
- The Re-employed company shall fill out the required forms of the Application form.
- Submit the “Re-employment Allowance Application form” and “the qualified recipient’s identification card” to the Hello Work office.
Examples of the payment of Unemployment Allowance
Age 25, Monthly wage 200,000yen, 2 years insured period.
Separated from the company due to personal reasons and re-employed at 30 days after the period of restriction on benefit payment. [/su_box]
Daily wage
200,000 yen × 6 months ÷ 180days = 6,667yen
Amount of daily Basic Allowance
6,667yen × Benefit Ratio (72.99%) = 4,866yen
Total Basic Alloance paid
4,866yen × 30days = 145,980yen
Re-employment Allowance
Period of Re-employment Allowance Paid
The prescribed term of benefit（90days）― Period of Basic Allowance Paid（30days）＝60days
Total Re-employment Allowance paid
4,866yen× 60days × 70% = 204,372yen
Age 25, Monthly wage 200,000yen, 2 years insured period.
Separated from the company due to personal reasons and re-employed during the period of Restriction on Benefit Payment. [/su_box]
Cannot receive since the employment obtained during the period of Benefit Payment restriction.
- Re-employment Allowance
Period of Re-employment Allowance Paid
The prescribed term of benefit（90days）― Period of Basic Allowance Paid（0day）＝90days
Total Re-employment Allowance paid
4,866yen × 90days × 70% = 306,558yen
Age 28, Monthly wage 250,000yen, 6 years insured period.
Separated from the company due to company’s reasons and re-employed at 60 days after the period of restriction on benefit payment. [/su_box]
Daily wage
250,000yen × 6 months ÷ 180days = 8,333yen
Amount of daily Basic Allowance
8,333yen × Benefit Ratio (66.12%) = 5,510yen
Total Basic Alloance paid
5,510yen × 60days = 330,600yen
- Re-employment Allowance
Period of Re-employment Allowance Paid
The prescribed term of benefit（120days）― Period of Basic Allowance Paid（60days）＝60days
Total Re-employment Allowance paid
5,510yen × 60days × 60% =198,360yen
Summary
Unemployment Insurance can be your financial help on the occasion of your job separation.
The amount of the benefit differs from your reason for job loss, age, and insured period.
To have your job hunting period well-planned, please visit the Hello Work office immediately after separation from your company.
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