First law: 1947.

Current law: 1974 (Employment Insurance Act No.116), with 2010 amendment (latest).

Type of program: Social insurance system.

Employees younger than age 65.

Voluntary coverage for employees in agricultural, forestry, and fishery establishments with less than five regular employees.

Exclusions: Workers who have less than 20 scheduled working hours per week and self-employed workers.

Special systems for daily workers and seasonal workers.

Insured person: 0.6% of monthly earnings (salary and bonuses before tax); 0.7% for agricultural, forestry, fishery, or sake brewing industry workers.

Self-employed person: Not applicable.

Employer: 0.95% of payroll (salary and bonuses before tax); 1.05% for agricultural, forestry, fishery, or sake brewing industry workers; and 1.15% for construction workers.

Government: 13.8% of the cost of unemployment benefits and special allowances, 18.3% of the cost of benefits for daily workers, and 6.9% of the cost of benefits for insured persons on child care leave and for older workers.

Unemployment benefit: Must have at least 12 months of coverage during the last 24 months before unemployment (in case of unemployment due to insolvency or dismissal, at least 6 months of insurance during the last 12 months). Must be registered with the Public Employment Security Office and be capable of, and willing to, work. The unemployed person must report to the Public Employment Security Office once every 4 weeks. Unemployment must not be due to voluntary leaving, serious misconduct, refusal of a suitable job offer, or nonattendance at vocational training (otherwise, the benefit may be limited to 1 to 3 months).

Special daily or monthly allowances: The insured must have at least 3 years (1 year if receiving the benefit for the first time) of coverage to receive education and training benefits and must take designated educational and training courses.

Older worker benefit: Paid to workers aged 60 to 64 with more than 5 years of coverage whose wage was reduced by 75% from the wage paid at age 60.

Child care leave benefit: Paid to insured persons who take child care leave to care for a newborn child up to age 1; up to age 18 months under certain conditions.

Nursing care leave benefit: Paid to insured persons who take leave to provide nursing care for family members.

Unemployment benefit: The benefit is 50% to 80% of the insured's average daily wage (higher percentages are awarded to lower-wage earners) in the 6 months before unemployment; 45% to 80% if aged 60 to 64. The benefit is paid after a 7-day waiting period for 90 to 330 days, according to the length of coverage, age and reasons for unemployment. The benefit may be extended for another 60 days for insured persons who are unemployed due to insolvency or dismissal and are having difficulty finding a new job, taking into consideration age and regional circumstances (temporary measure until March 31, 2012).

The minimum daily benefit is 1,600 yen.

The maximum daily benefit is 7,505 yen.

Special daily or monthly allowances: Allowances are paid to cover the cost of vocational training, transportation for job search activities, moving, and lodging expenses while seeking employment in the wider area.

Older worker benefit: The maximum benefit is 15% of the wage after age 60, depending on the percentage of wage reduction.

Child care leave benefit: A monthly benefit is paid of 50% of the insured's average daily wage in the 6 months before the leave period multiplied by 30.

Nursing care leave benefit: 40% of the insured's wage before the leave period is paid.

Ministry of Health, Labour and Welfare (http://mhlw.go.jp) provides general supervision and management.

Ministry of Health, Labour and Welfare
1-2-2 Kasumigaseki, Chiyoda-ku,
JP- Tokyo 100-8916
Japan

Tel.: +(81-3) 3595 2402
Fax: +(81-3) 3501 2532

Employment Security Bureau in the Ministry of Health, Labour and Welfare administers the national program through the Employment Insurance Divisions of prefectural Labour Bureaus and Public Employment Security Offices.