It’s a lifesaver when between jobs: Unemployment benefits

photo by Simon Cunningham

Fortunately, you found a job in Japan, but unfortunately you lost the job! Despite all of your dedication and hard work, sometimes you face job loss. In such hard time, people between jobs can receive benefits from the government for a certain period of time in order to stabilize their living situation and job search. This social security system is generally called “unemployment benefits”. Let’s have a look in the details of the “unemployment benefit” and who is eligible for the benefits.

About unemployment benefits

The “basic allowance”, so called “shitsugyo-hoken (unemployment benefit)”, is a part of the “employment insurance system” of Japan. It is also known as “shitsugyo-kyufu” or “shitsugyo-teate”. When you are laid off, fired or have quit the job for some reason, you may be entitled to receive benefits until you find another job. All businesses who has at least one employee, except for some entities in agriculture, forestry and fishery industries, are required to join the system. The employers deduct premiums from employee’s monthly paycheck. Part-time or casual workers are also required to participate if they are:

expected to be employed for at least 31 days, and
working at least 20 hours per week

There is no boundary between Japanese nations and foreign nations to receive unemployment benefits. You can claim unemployment benefits at a Hello Work branch office in your area.

People who are not eligible for the employment insurance system

In addition to those who do not meet the two conditions above, persons such as foreign government employees, those who currently receiving benefits from foreign government, students on student visas, or working holiday visa holders are not eligible to the employment insurance system. Also, this system is designed for labors who are employed by businesses, therefore people such as sole proprietors, CEOs or auditors (unless they are employed by businesses) are not eligible for the employment insurance system either.

Eligibility criteria to receive unemployment benefits

First of all you must be “the unemployed” to receive unemployment benefits. The definition of “the unemployed” is: persons who are unemployed despite the great efforts made by them to find a job. Therefore the first condition is,

You are ready to take a job at any time and have shown your positive intention to find a job at a Hello Work branch office

Accordingly, if you are not ready to immediately take a job because of disease, injury, pregnancy or child birth and other reasons, you are not eligible to receive unemployment benefits. In addition to the first condition, you also need to meet either of the following two conditions.

In two years preceding the day you become unemployed, total months you were covered by the employment insurance aggregates at least 12 full months.
In case you become unemployed for special reasons such as bankruptcy or discharge, in one year preceding the day you become unemployed, total months you were covered by the employment insurance aggregates at least 6 full months.

※ An insured month must have more than 11 days as the bases of wage payment.

Procedures to claim unemployment benefits

Eligibility assessment

To claim unemployment benefits, you need to bring the following documents to a Hello Work office in your area.

Separation notice (provided by your previous employer)
The certificate of the insured of employment insurance (provided by your previous employer)
Resident card
Two ID photos and your inkan (seal)
Bank account book

Information session

Hello Work staff will give you a group session to explain about the employment insurance system. After the session, you will receive “the qualified recipient’s identification card” and “an application for recognition of unemployment”. Also they will advise you of the date of “the day for recognition of unemployment”.

Job hunting

Search and apply for positions by using a Hello Work branch office or other job hunting tools.

Recognition of unemployment

You need to visit a Hello Work branch office to declare the state of unemployment once in every 4 weeks. Fill in and submit an application for recognition of unemployment with the qualified recipient’s identification card.

Receive unemployment benefit

Once you are recognized out of the employment for the declared period, a basic allowance will be paid for the period. However, 7 days from the first day your eligibility for unemployment benefits is confirmed are “waiting period”, and no benefit will be paid for this period. Also, if you were forced to leave the job due to bankruptcy, redundant etc, you can start receiving a benefit seven days after first unemployment recognition day. However, if you have quit the job for your own reason, you will have to wait another 3 months before receiving the first benefit.

Amount of basic allowance, Period allowances are paid and Benefit-receivable period

Amount of basic allowance

The unemployment benefit you receive from the government is called “basic allowance”. This is determined by the wage you were receiving in 6 months preceding the day you become unemployed. A rough figure of the daily amount of basic allowance payable to you will be 50 to 80% of “total wage you received in 6 months preceding the day you become unemployed ÷ 180“. The less your wage was, the higher rate will be applied.

Period allowances are paid

This is the maximum number of days for which basic allowance is paid. In case you quit the job for your own will, retirement under the age limit or expiry of term etc, the length of this period varies 90, 120, 150days depending on the length of period you were covered by the employment insurance.

Benefit-receivable period

This is often mistaken for period allowances are paid, however “benefit receivable period” indicates the period in which you can receive basic allowance. No matter of your age or insured period, the benefit-receivable period is one year from the day you become unemployed. Generally speaking, you are not entitled to receive basic allowances out of this period even though “period allowances are paid” is still remaining. However, if you have been disqualified because you cannot work for reasons such as disease, injury, pregnancy or child birth, you are allowed to extend the benefit-receivable period up to 3 years. Note that extension of “benefit-receivable period” does not extend “period allowances are paid”.

Summary

Losing a job is tough enough even when you are in your own country. Then how much worse will it be if it happens during your stay in Japan? Working visa holders, more than anyone, will have more to concern about the conditions of their visas, the conditions of their future job etc. fortunately, Japanese employment insurance system treats Japanese nations and foreign nations equally. So, if you face a tough time of job loss, fully utilize this system to make your job-hunting fruitful.