photo by stonebridge
While working on working visa in Japan, you may have an occasion to change jobs. You may unfortunately get redundant, or headhunted by a competitor company for better career. There is not much difference in procedures for the social security system that Japanese nationals and foreign nationals are required to follow when they switch jobs. However, if you are a foreign national, you need to do a little extra things. Also, you will follow different procedures depending on if you are leaving current job for another career or looking for a new job after leaving current workplace.
If you haven’t found a new job
Switch from Employee’s Pension Insurance to National Pension
In Japan, majority of employees aged 20 to 59 years are covered by public pension system such as Employee’s Pension Insurance or Mutual Aid Pension through their employers. Once you leave the job, you will be disqualified from current Employee’s Pension Insurance System. If you will be between jobs for more than 2-weeks, you need to switch to National Pension System by visiting a municipal office in your area. You will be required to present your pension book. Inquire your municipal office for other required documents in prior as what you need to bring varies by municipalities. An application must be submitted within 14-days from the day you left the previous job. If you have a difficulty to pay monthly contributions due to sudden job loss, apply for Exemption of the Contributions or Contribution Postponement System for Low Income Persons.
※If you worked for an employer who doesn’t join Employee’s Pension Insurance System and have enrolled in National Pension System, you don’t need to make any further action.
Changing jobs? You may have to switch pension systems
So you lost your job, apply for special exemption of NPS
Switch from Employees’ Health Insurance to National Health Insurance
If you are working for an employer who joins Employees’ Health Insurance System, you will be disqualified from current health insurance and have to return your health insurance card to your employer when you leave the job. Your employer withdraw you from the health insurance after you leave the job. Then you need to visit a municipal office to enroll in National Health Insurance. If you wish to stay with the previous employee’s health insurance system after leaving the job, you can do so up to 2-years if you meet all the requirements. To continue previous employee’s health insurance, you need to send the application form to Japan Health Insurance Association office in your area within 20-days from the day you left the job.
※If you worked for an employer who doesn’t join Employee’s Health Insurance System and have enrolled in National Health Insurance System, you don’t need to make any further action.
Changing jobs? Switch to National Health Insurance or continue membership
Apply for unemployment benefits
In Japan, all businesses that employ a worker or more are required to join Employment Insurance System. Majority of workers who fulfill conditions such as minimum hours worked and continuous employment are covered by Employment Insurance. When you lost a job, especially in a case you lose your source of income because of the employer such as redundancy, you are entitled to receive unemployment benefits. To apply for payments, take a separation notice, certificate of employment insurance, resident card, two ID photos, inkan (personal seal), bankbook to the nearest Hello Work, the public employment service center. The amount of benefits and duration you will receive payments differs depending on your income and service years in the previous job. Also, you must regularly visit Hello Work to be approved as unemployed because you must be looking for a job to receive benefits. People who left a job for personal circumstance may also be entitled to receive unemployment benefits after 3-months waiting period.
It’s a lifesaver when between jobs: Unemployment benefits
Income tax and local tax
While working in Japan, your employer withhold income tax from your wage before you receive monthly salary. This is called Withholding System. Also, your employer files your tax return in December, the end of a year, to adjust overpayment or underpayment of income tax. After tax return, your employer calculate local tax amount based on your annual income for the year and deduct it from your monthly salary. When you change jobs, you need to follow different procedures for each tax depending on the month you leave the job.
Tax return (Income tax)
【If you start working in a new workplace within the same year (by December) you left previous job】
New employer will file your tax return. Pass your statement of earnings from your previous employer to your new employer.
【If you DON’T start working in a new workplace within the same year (by December) you left previous job】
You will need to file tax return by yourself at the nearest taxation office. Take your statement of earnings and inkan (personal seal) with you.
Local tax payment
While working for an employer, your local tax is calculated based on the previous year’s income and deducted from your salary by the month between May to June following year (Special collection). Procedures for local tax you should follow differs by the month you left the job.
【If you left a job from January to May】
Total sum of local tax you are supposed to pay by May will be deducted from your last salary.
【If you left a job from January to May】
Total sum of local tax you are supposed to pay by May following year will be deducted from your last salary. You can also choose a quarterly payment using payment slip sent from your local council (Ordinary collection).
If you are starting a new job without interval
If you are going to start a new job without a gap, things are a lot easier.
Pension
You only need to pass your pension book to new employer so that they can enroll you in their pension fund. If your new employer doesn’t join public pension system, you need to switch to National Pension by yourself within 14-days after you left the previous job.
Employee’s Health Insurance
Similar to pension systems, your new employer will enroll you in their health insurance fund. If your new employer doesn’t join public health insurance system, you need to switch to National Health Insurance by yourself within 14-days after you left the previous job.
Unemployment benefits
You only need to pass your certificate of employment insurance to new employer.
Income tax and local tax
Income tax
Pass your statement of earnings from your previous employer to your new employer.
Local Tax
When both quitting the previous job and starting the new job, you need to have your employers to fill the transfer notification concerning earnings and special tax collection. Then your new employer submit the completed form to a municipal office.
Compulsory for all working visa holders changing jobs
Notification concerning the accepting organization
All working visa holders must submit a notification concerning the accepting organization to a regional immigration office if there is any change in such social relationships, no matter if they have found a new job before quitting current one or not. You can submit a notification in person at the nearest regional immigration office, or send it to Tokyo Regional Immigration Bureau by post. You will need to present your resident card if submitting in person, or attach a photocopy of your resident card with a notification if sending it by post. A notification must be submitted for every single event, therefore you will need to write two notifications when changing jobs, one notification for quitting a job and another one for working in a new workplace.
Students and employees, learn about Notification concerning the accepting organization or the spouse
Helpful application when starting a new job
Certificate of Authorized Employment (Optional)
Certificate of Authorized Employment certifies the applicant’s eligibility to engage in an activity involving income or remuneration, and the applicant’s status of residence and details of permitted activities are described on it. Applying for Certificate of Authorized Employment is recommended once you start working in a new workplace. Working visa holders are allowed to engage in specific activities permitted under their status of residence. As long as you submit notification concerning the accepting organization, you are free to change jobs within the extent of activities permitted under your status of residence. When your status of residence is close to expire, you need to have your employer at the time to apply for Permission for Extending Period of Stay. However, if the activities you engage in at the time of application doesn’t meet the conditions of your status of residence, your application may be declined and you may lose the permission to stay in Japan. If you apply for Certificate of Authorized Employment at the time of starting a new job, the immigration authority examines whether your new job falls into the category of activities permitted under your status of residence so that you will know if you have the right job. An application for Certificate of Authorized Employment can be made at a regional immigration office at a cost of 900yen. Bring the application form, resident card, passport and permission to engage in an activity other than that permitted under the status of residence previously granted (if any) with you.
Work visa holders, get certificate of authorized employment when changing jobs
Choose a job, choose a career
So, you have to make lots of applications when changing jobs in Japan. But things are a lot different depending on if you have a new job lined up or not. Anyway, all these applications are quite important ones to live in Japan, so don’t overlook.
