Health insurance and pension

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As I mentioned in a previous post that you can continue paying into your previous employers Social Insurance System (社会保険 – shakai-hoken) through 任意継続 – nini-keizoku (for a max. of 2 years), you can also enroll into the new established company’s Health insurance and pension.

To be more specific, I would enroll to the Employee’s Health Insurance (社会保険 – shakai-hoken) and Employee’s Pension Insurance (厚生年金 – kousei-nenkin). The Employee’s Health Insurance would be from the Japan Health Insurance Association (全国健康保険協会 – zenkoku-kenkou-hoken-kyoukai, aka 協会けんぽ – kyoukai-kenpo), and the Employee’s Pension Insurance is from the Japan Pension Service – 日本年金機構 (nihon-nenkin-kikou).
As a note for IT companies, the Kanto IT Software Health Insurance (関東ITソフトウェア健康保険組合 – kanto-IT-sofutowea-kenkou-hoken-kumiai) has a cheaper rate than the Japan Health Insurance Associate, however there are requirements before you can enroll, such as a minimum of 5 employees.

The way it works is based on how much compensation I receive, the company pays half of the Health insurance and Pension, and I would have other half of the Health insurance and Pension deducted from my compensation.

As the single fulltime co-founder in the business, I had originally made the decision to not get paid until we generated revenue. To sign up for the Health insurance and pension through the company, I gave myself a 50,000 JPY monthly compensation (to keep things simple and frugal as it was the within the cheapest rate).
(Note that members of the board can adjust their compensation figures once a year, at the end of the financial year).

The following documents were needed to be submitted to the local Pension Office (年金事務所 – nenkin-jimusho):
  • Report of the new application for health insurance/welfare pension insurance (健康保険・厚生年金保険新規適用届 – kenkouhoken-kouseinenkin-shinkitekiyou-todoke).
    From local Pension Office.
    (Note: you will need to attach or draw a map of your office location on the back of the form)
  • Report of insured person for health insurance / welfare pension (健康保険・厚生年金保険被保険者資格取得届書 – kenkouhoken-kouseinenkin-hokenhihokensha-shikaku-shutoku-todokesho)
    From local Pension Office.
    (Note: you will need your Employees’ Pension Insurance registration number which is on your Pension book). 
  • Certified copy of register (登記簿謄本 – toukibo-touhon). The certificate issue date must be within 60 days prior to document submission date to be valid.
  • The “Minutes of the Board of Directors meeting” (取締役会議事録 – torishimariyakukai-gijiroku)
  • The “Minutes of the Shareholders Meeting” (株主総会議事録 – kabunushi-soukai-gijiroku)
  • Bank transfer form to be filled out, Inkan stamped by the Company president, as well as a Seal from the Bank (just take the form to the bank counter, they will know what to do).

There are templates available online to fill out for the meeting minutes.
I found the local Pension Office to be very helpful in the filling out of the forms.

Phew, just when you thought all the paperwork is all done, there’s more.

I would recommend to use a Certified Social Insurance and Labor Consultant (社労士 – sharoushi) as the forms and content is very confusing.