Workers' accident compensation insurance (Japan) explained

is a government insurance program in Japan. It pays benefits to workers (or their survivors) if the insured worker suffers injury, illness, or death due to circumstances related to his or her work related duties or commuting. The workers' accident compensation insurance system is also involved in social welfare projects for workers, such as promoting the restoration of workers who have suffered injury or illness to a full role in society.[1] It is paired with and referred to collectively as .[2] [3] Workers' Accident Compensation Insurance is managed by the Labour Standards Office.[4]

Coverage

All companies that employ workers must provide this coverage. The employer bears the burden of paying premiums, workers are not responsible for payments.[5] [6]

Premiums

As of April 2012, the maximum premium rate is 10.3% (for construction work and the like) and the minimum is 0.3% (for work that is mostly clerical). 0.005% is added to the above premium to fund benefits for asbestos-induced diseases.[7] For example, for an office worker earning 250,000 yen per month the premium the employer would have to pay would be around 750 yen.

Benefits

Benefits are paid for any illness, injury, disability or death incurred as a result of an accident caused by work or while commuting.[8] [9] [10]

Medical Compensation Benefit

As long as injured workers visit a designated hospital for treatment they will not have to pay any costs themselves, it will all be covered by the insurance. If they visit a non-designated hospital they will be charged as usual but can receive a refund later. Costs for medical treatment at home and transportation are also covered.

Lost Wage Benefit

From the fourth day of missed work onward the insurance covers two-thirds of a worker's lost earnings. This is for workers who are on leave without pay.

Illness or Injury Compensation Pension

If a worker has not recovered within 18 months they may be eligible to receive this pension.

Disability Pension Benefit

When disability remains after treatment the worker may be eligible to receive this pension. There are 14 levels of disability covering around 140 types of disability. The worker will receive payment either as a lump sum or pension depending on their circumstances.

Bereaved Family Compensation Benefit

This is provided to family members who had been financially supported by a worker who died due to a work-related accident.

Nursing Care Compensation Benefit

This is provided to those who receive the Illness or injury compensation pension or the disability pension benefit who also meet certain other requirements.

Funeral Expenses Benefit

This partially covers the cost of a deceased worker's funeral

Secondary Screening Examination Compensation Benefit

Covers the cost of regular medical examinations, if these are thought to be necessary.

Notes and References

  1. The Japan Institute for Labour Policy and Training Archives Retrieved on June 17, 2012
  2. JETRO website 4.9.1 Labour and social insurance systems Retrieved on June 16, 2012
  3. The Japan Institute for Labour Policy and Training Labour Costs Retrieved on June 16, 2012
  4. General Union website Workers' Accident Compensation Q&A Retrieved on June 17th 2012
  5. JETRO website 4.9.1 Labour and social insurance systems Retrieved on June 16, 2012
  6. Riken website Life at Riken Retrieved on June 17, 2012
  7. JETRO website 4.9.1 Labour and social insurance systems Retrieved on June 16, 2012
  8. JETRO website 4.9.1 Labour and social insurance systems Retrieved on June 16, 2012
  9. Ofix website Worker’s Accident Compensation Insurance Retrieved on June 17, 2012
  10. Ministry of Health, Labour and Welfare website Labour Standards Bureau Retrieved on June 17, 2012