photo by dmbosstone
The coronavirus pandemic which started at the end of 2019 has not showed a sign of ending yet. In Japan, vaccination was commenced in mid-February, but Japan is way behind of other developed countries in vaccine penetration rate. Also, the government declared a state of emergency for the third time in a few prefectures. During this pandemic, the food industry and tourism industry has been significantly impacted more than any other industries. As a large number of foreign residents living in Japan are involved in these food business and tourism, many of them are facing financial issues now. Also, there are those who have issues with their visa. This column will revise financial supports and special measures implemented by Japanese government that foreign residents can use.
Temporary Loan Emergency Funds (Students may be eligible)
Emergency Small Fund (For person who are taking a temporary leave from a job)
This fund is designed to support households facing a decrease in income due to temporary suspension of work, etc. as a result of COVID-19, and require an urgent temporary loan to maintain their livelihood.
- Eligible person: households facing a decrease in income due to temporary suspension of work, etc. as a result of COVID-19, and require an urgent temporary loan to maintain their livelihood
- Amount: Up to \200,000 for households affected by a temporary suspension of work due to child’s school closure or household with any members who are sole proprietors and their income has decreased/Up to \100,000 for other cases
- Grace period: Within 1 year
- Repayment deadline: Within 2 years
- Contact: Local social welfare council
General Support Funds (For person who has left a job)
This fund is designed to support households affected by COVID-19 pandemic that are suffering financially because of reduced income or unemployment, making it difficult to maintain their daily life.
- Eligible person: households affected by COVID-19 pandemic that are suffering financially because of reduced income or unemployment, making it difficult to maintain their daily life
- Amount: \200,000/month for household with 2 or more members/Up to \150,000 for single household
- Grace period: Within 1 year
- Repayment deadline: Within 10 years
- Contact: Local social welfare council
Housing Security Benefit (Students may be eligible)
This system is for people who had lost or may lose their current housing due to poverty caused by leaving a job, and the government pays benefits which covers the rent amount. The benefit will be directly paid from a local government to a landlord.
- Eligible person: A person who had lost or may lose his/her current housing due to poverty caused by leaving a job
- Duration: 3 months
- Place for application: Local government office
To receive this benefit, an applicant must meet several conditions: an applicant must make an application within 2 years from the day of losing a job; an applicant must be a person who earn the majority of household’s income; an applicant must have had a decrease of income; household’s saving must not exceed a designated amount.
Reduction or Exemption from National Health Insurance (Students may be eligible)
The amount of contribution of National Health Insurance is determined based on individual’s income in previous year, therefore if your previous year’s income is low, your contribution is already adjusted according to your declared income. However, if you have a financial difficulty in the current year due to significant income decrease caused by job loss, natural disaster or other reasons, you may be eligible for reduction/exemption from National Health Insurance contribution (application required). Inquire your local government office for more details.
- Eligible person: A person who have a difficulty to pay contributions due to the COVID-19 pandemic.
- Period: Contributions due from February 1, 2020 to March 31, 2021
- Contact: Local Council Office
Reduction or Suspension from National Pension (Not for students)
People who have difficulty to pay National Pension contributions may be eligible for reduction (1/4, 1/2 or 3/4 of contribution amount), or exemption from payment according to estimated income amount of this year. Inquire your local government office or Japan Pension Service office for more details.
- Eligible person: A person who have a difficulty to pay contributions due to the COVID-19 pandemic.
- Period: February 2020 – June 2020, July 2020 – June 2021
- Contact: Local Government Office or Japan Pension Service
Special Measure for People Who Want to Extend Their Stay in Japan
Conversion to “Designated Activities” Visa
A person who wishes to return to his/her country but have difficulty to do so due to transport restrictions or other reasons is entitled to convert his/her current visa to “Designated Activities” visa which is valid for 6 months. Work permission may be granted according to the current visa. The application method (in person/by post) varies depending on your residential address. Inquire your local immigration office before you apply for conversion of visa.
- Eligible person: A person who have difficulty to return his/her country before the expiry date of visa due to transport restrictions or other reasons caused by the COVID-19 pandemic
- Contact: Regional Immigration Services Bureau or District Immigration Office
Special measures for “Engineer/Specialist in Humanities/International Services” Visa Holders
If a person who has either of “Engineer, Specialist in Humanities and International Services” loses a job or gets suspended from employment because of the COVID-19 pandemic, he/she is allowed to remain in Japan with his/her current visa. To be eligible, the person must meet one of the following conditions;
- Person who had a notice of termination of employment from the employer, and wish to seek a new job
- Person who was instructed to wait at home by the employer and wish to return to work
- Person who was ordered to reduce working hours or days and wish to continue working
- Person who is in a similar situation as 1 to 3 above
You will be able to have a permission to engage in other activities if you submit a document that proves you are in one of the above situations due to the circumstance of your employer. The permission is valid until expiry date of visa or 6 months from the date of permission, whichever arrives earlier.
Postponement of Payment for Utility and Tax (Students may be eligible)
The Japanese government has requested electricity companies and gas companies to allow people who have financial difficulty extension of bill payment. Accordingly, companies such as TEPCO, Tokyo Gas and KEPCO are conducting 1-to-2-month postponement on payment. If you are under financial pressure because of the COVID-19 pandemic, contact your power supplier if they have such a measure for their customers.
Summary
The effect of COVID-10 pandemic has shown no sign of ending. The worst thing about this pandemic is the global decline of economic activities. Not just Japanese citizens, but foreign residents in Japan are also suffering from the impact of COVID-19 pandemic and having financial difficulty. During this unusual time, the governments are implementing various measures. These are also open for foreign residents, so if you have any issue on your financial status or visa, contact the bodies introduced in this column as soon as possible.
