1. Introduction
The time for annual renewal of labor insurance is coming soon. Employers running business in Japan will receive the envelope for annual renewal from the Prefectural Labor Bureaus. So in this column, we mention the general outline of labor insurance and the process of annual renewal.
   
The word “labor insurance” seems to be familiar, but do you know that labor insurance is a collective term for “worker’s accident compensation insurance” and “employment insurance”? Labor insurance consists of the above two insurances, together with “general contribution” (contribution for securing the victim of asbestos based on the Act on Asbestos Health Damage Relief).

In principle, all employees receiving wages in the operation are eligible for worker’s accident compensation insurance, regardless of employment status (e.g. day laborers, part-timers, full-time workers, etc.).
Employment insurance, on the other hand, is applied to workers satisfying certain conditions such as working 20 hours or more per week, or expecting to work 31days or more, and so on. Directors such as president, vice president, etc. are not treated as employees, and so they are not eligible for both worker’s accident compensation insurance and employment insurance. (They cannot apply for those two insurances.)

2. Insurance Premium and Rate
The rate of worker’s accident compensation insurance premium differs depending on a type of business and ranges from 2.5/1000 to 88/1000. The premium is totally paid by the employer. The rate of employment insurance also differs depending on a type of business, but the premium is paid by both employers and employees. As you see below, the burden of employers are heavier than that of employees.

  

(Employment insurance premium rate for FY2015)