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VISA Q and A on FM COCOLO 76.5 MHz Getting a refund on your Welfare Pension Insurance On Aired Data: March 7, 2000 |
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Summary of the On Aired Program Client: A Filipino working in Osaka. .Case: The Filipino is planning to leave Japan. From her monthly salary, welfare pension insurance (Kousei Nennkin) fees have been deducted, but he will not be in Japan to collect it. He is wondering if he can get a refund or not. What is a “Welfare Pension Insurance System (Kousei Nenkin)”? The welfare pension insurance system or Kosei Nenkin provides the workers and their family a pension and allowance to support their life expenses when retiring, death or any other condition, which disables the worker to continue his job. The welfare pension insurance is compulsory to all companies operating in Japan and as a principle, all employees of a company must be insured. Pension premiums are borne evenly by the company and by the employee in accordance to wages of the employee. The payment is done on a monthly basis and the employer normally automatically withholds the amount due to the employee from his/her monthly salary.The Welfare Pension Insurance system comprises pensions for the aged or retiree (Rorei Kosei Nenkin), for the disabled because of illness or injury (Shogai Kosei nenkin,) and for the family members who were left behind upon death or for the widow and children upon death of the worker (Izoku Nenkin.) Aside from the welfare pension insurance, premium for health insurance is also withheld automatically from the monthly salary.To explain the difference between Welfare Pension Insurance and Health Insurance? Both insurances are established to support employees in times of need.Health insurance supports the medical expenses of the employee and his/her family for a certain amount of percentage in case of injuries or illness. Therefore, this system lessened the burden of employees on expenses when medical attention is necessary. As mentioned earlier,Welfare Pension Insurance provides pensions and allowance to the worker and his/her family when the workers retired, disabled or died. Thewelfare pension insurance and health insurance come in pair and comprise the so-called Social insurance. Social insurance is not applicable to those who are self-employed or jobless. For the self-employed and those who are not working, they can avail of the National Health insurance and the national pension, which are under the management of the local municipal office. Application for national health insurance and national pension are to be made personally at the local municipal office and unlike the social insurance, premiums are to be paid directly to the local municipal office. Foreigners can make avail of both national insurances if he/she is legally registered at the local municipal office and if he/she has been residing in Japan for a year or more. Any resident in Japan who is not a member of the social insurance are eligible to apply for the national health insurance and national pension. Returning to this case, the Welfare Pension Insurance matures upon the retirement of an employee. Generally, members who are eligible to receive pensions are those who have paid premiums for 25 years or longer and who have reached the age of 65.But in this case, the system implemented from April of 1995 called the “lump-sum withdrawal payment” is applied. The lump-sum withdrawal payment system called Dattai Ichiji Kin in Japanese is for foreign workers who have paid premiums for a span of six months or more and decides to withdraw from the welfare pension insurance or national pension, to return to their home country. Request for the lump-sum withdrawal payment must be done within two years after the date of departure from Japan. For an applicant to have access to the“lump-sum withdrawal payment”of the welfare pension insurance, the applicant must have complied with the following requirements: 1. He/she is not a Japanese national, 2. He/she has paid the premiums for the welfare pension insurance or national pension for six months or more 3. Has no domicile in Japan 4. He/she has never been entitled to receive any pension including disability allowances. The benefit varies according to the length of the insured period as well as how long the premiums have been paid. For instance, suppose you have paid the premiums between 6-12 months, you are entitled to receive half of the average monthly income and if you have paid the premiums for a span between 12-18 months, you will receive an amount equivalent to one-month of your average monthly wages. So since our client has been working for 3 years, meaning she has been paying the premiums for the welfare pension insurance for 3 years, she will receive an amount equivalent to three months worth of her average monthly salary.Be aware that the average monthly wages are different from the actual monthly wages and is calculated by the company or employer.Since the applicant will have to receive the money outside of Japan, the money sent would be in the currency of the applicant’s respective country, according to the rate on the day the payment was transferred. So, for our client, after the company has calculatedher average monthly wages of 3 months, the money will be converted into Philippi no currency and be transferred to her bank account. Keep in mind also that 20% of income tax will be deducted. |
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