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Japan to Conduct Survey on Foreign Residents’ Insurance Payments

by Celia

The Ministry of Health, Labour, and Welfare in Japan is preparing to initiate its inaugural survey to gather information on health insurance and pension contributions made by foreign residents.

The upcoming survey is intended to assess the present and future impact of foreign nationals on Japan’s social security system, as reported by The Japan Times.

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The ministry, lacking specific data on these contributions, is in the final stages of outlining the survey parameters and will soon commence data collection, according to a representative from the office of general policy and evaluation.

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This move corresponds with Japan’s strategy to tackle its labor shortage by embracing more foreign workers, both skilled and unskilled. It also follows the recent approval by the Lower House of a bill amending immigration laws, including a provision to revoke the permanent residency status of foreign nationals who deliberately evade taxes, a clause that has drawn criticism from certain rights groups citing discrimination concerns.

The proposed revisions to immigration laws also include replacing the technical intern training program with a new system allowing foreign workers to change employers and extend their stay in Japan.

The call for collecting data on social security payments by foreign residents arose from discussions in a Lower House committee meeting earlier this month.

During the meeting, Health Minister Keizo Takemi responded to inquiries from Yasushi Adachi, a member of Parliament from Nippon Ishin no Kai, acknowledging the need for more comprehensive data.

Adachi highlighted uncertainties regarding the strain on the social security system due to an influx of foreign residents, underscoring the importance of balancing this against the advantages of admitting foreign workers.

Takemi referenced a sample survey conducted by the Immigration Services Agency, involving 1,825 foreign nationals who applied for permanent residency between January and June 2023.

The survey revealed that 235 applicants had defaulted on tax, insurance, or pension payments. Among them, 213 had missed pension contributions, 31 had failed to pay residential taxes, and 15 had neglected national health insurance premiums.

An official from the Immigration Services Agency informed the Lower House committee that the survey did not specify the number or duration of the missed payments.

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Takemi acknowledged the limitations of the survey, noting that it represented only a small fraction of Japan’s 892,000 permanent residents as of the end of last year. He emphasized the necessity for more extensive data collection.

“The breakdown indicates a trend – that pension premiums are the payments most frequently missed,” he remarked, as cited by The Japan Times. “Long-term residents, not just permanent residents, have the right to avail social security services, so it is only reasonable for them to fulfill their obligations by making contributions, similar to Japanese nationals.”

As of December 2023, Japan counted 3.42 million foreign residents, marking a 10.9% rise from the previous year, according to data from the Immigration Services Agency. The largest national groups were Chinese nationals (822,000), Vietnamese (565,000), South Koreans (410,000), and Filipinos (322,000).

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