Social Security (Minimum Standards) Convention, 1952 (No. 102) - Japan (Ratification: 1976)

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 102 (minimum standards) and 121 (employment injury benefits) together.

The Committee notes the observations of the Japanese Trade Union Confederation (JTUC–RENGO) communicated with the Government’s report, and of the National Confederation of Trade Unions (ZENROREN), received on 22 September 2017. The Committee also notes the Government’s reply to the observations made by the ZENROREN.

Part V (Old-age benefit). Article 27 of Convention No. 102. Part-time employees. In its previous comments, the Committee requested the Government to provide explanations on the legislative amendments (Act No. 62 of 2012) to the National Pension Act and other related Acts, which, among other, extended the coverage of the Employee’s Pension Insurance scheme to part-time employees in enterprises employing 500 workers or more. The Committee notes the information provided by the Government in its report specifying that, as of 2016, the Employees’ Pension scheme was expanded to include part-time employees working at least 20 hours a week in enterprises with 501 or more employees. In addition, those working in enterprises with 500 or fewer employees can participate in the Employees’ Pension scheme if an agreement is reached between workers and the enterprises’ management. The Committee also notes the observations provided by JTUC–RENGO stating that the measures taken to extend the coverage of part-time employees are grossly insufficient and that steps to further extend coverage of part-time employees were needed. It also notes the observations of ZENROREN indicating that private enterprises with five or more regular employees in some primary industries and businesses are not required to insure their workers with the Employees’ Pension Insurance scheme. The ZENROREN further indicates that the number of part-time employees is increasing, as a means for employers to evade paying social insurance contributions. In its reply, the Government indicates that by the end of September 2019, the extension of coverage of part-time employees under the Employees’ Pension Insurance scheme will be examined in light of the status of implementation of the latest legislative amendments, the actual employment situation of the workers concerned, and the impact on enterprises. In view of the above, the Committee requests the Government to provide information on the outcome of this examination and on any measure taken or envisaged to further extend the coverage of part-time employees.

Article 28. Replacement rate of old-age benefit. The Committee requests the Government to provide statistical data on replacement rate of old-age benefit in accordance with Titles I–V of the report form for the Convention.

Article 65(10). Adjustment of old-age benefit. The Committee notes ZENROREN’s observations concerning the revision of adjustment rules of the pensions which includes: (i) a thorough implementation of the macroeconomics indexation mechanism, i.e. “unrealized negative adjustments to pensions stemming from the deflation period will be carried over and added up to negative adjustment against future increases in payment for inflation”, with effect from April 2018; (ii) a thorough wage indexation against consumer price indexation, i.e. pensions will be reduced, even if the rate of wage growth is inferior to the CPI, with effect from April 2021. According to ZENROREN, the revision of the adjustment rule of pensions will accelerate the reduction of public pension benefits. In its reply, the Government indicates that the revision of the pensions adjustment rules has strengthened the sustainability of the pension system and secured benefits levels for future generations of pensioners. The Committee recalls that in accordance with Article 65(10) of the Convention, the rates of current periodical payments in respect of old age shall be reviewed following substantial changes in the general level of earnings where these result from substantial changes in the cost of living. The Committee therefore requests the Government to provide statistical data on adjustment of old-age benefit in accordance with Title VI of the report form for the Convention.

Part XIII (Common provisions). Article 71. (a) Financing of unemployment benefit. According to ZENROREN and JTUC–RENGO, the National subsidy’s share in the employment insurance scheme continually decreased from 25 per cent to 13.75 per cent during the first revision and to 10 per cent during the second revision in 2017. In addition, the JTUC-RENGO indicates that the Employment Insurance Act, revised in 2017, has temporarily reduced employer and employee premium rates from 0.5 per cent to 0.3 per cent respectively until 31 March 2020. ZENROREN further states that, as a result of these changes, the amount of unemployment benefits has decreased by 25 per cent. Recalling that Article 71 of the Convention requires to ensure that the necessary actuarial studies and calculations concerning financial equilibrium are made periodically and, in any event, prior to any change in benefits, the rate of insurance contributions, or the taxes allocated to covering the contingencies in question, the Committee requests the Government to indicate whether such actuarial studies and calculations regarding unemployment insurance schemes are made periodically, with a view to ensuring the sustainability of the latter.

(b) Financing of old-age benefits. ZENROREN indicates that the Government’s policy is steadily reducing pensions in the long-term, without any real consideration of the impact and consultations with the persons concerned. It further indicates that the number of people whose benefits will be low will increase in the future. The Committee notes the Government’s reply regarding the measures taken to secure benefits levels for future generations. The Government also indicates that, in accordance with the latest financial audit in 2014, pensions will exceed a replacement rate of 50 per cent in the future. In addition, it states that a review of the pension system will be undertaken, should a financial audit indicate that the replacement rate of old-age benefits will fall below 50 per cent. Recalling that, in line with Article 71(3) of the Convention, the Government shall accept general responsibility for the due provision of the benefits, the Committee requests the Government to provide information on the outcome of the next financial audit.

Article 26 of Convention No. 121. Prevention of industrial accidents and occupational diseases. The JTUC–RENGO indicates an increased number of fatalities and injuries requiring work absences of four or more days. It further indicates that more effective measures aimed at preventing work-related injuries and fatalities are needed. The Committee requests the Government to provide information on measures taken or envisaged to prevent industrial accidents and occupational diseases, in the application of Article 26 of Convention No. 121.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

The Committee notes the Government’s report of 2012 containing its reply to the direct request of 2007, as well as the new comments made by the Japanese Trade Union Confederation (JTUC–RENGO). In this regard, the Committee notes with satisfaction the adoption of Act No. 62 of 2012 to amend the National Pension Act and other related acts, providing a basis for a better application of Part V (Old-age benefit) of the Convention on the following points:

• -Section 3 of the Act allows part-time workers in enterprises employing 500 workers or more to join the Employees’ Pension Insurance under certain eligibility conditions. An estimated 250,000 part-time workers would benefit from this amendment which, moreover, requires the Government to take a legislative measure to relax this eligibility condition by March 2019, to cover more part-time workers.
• -The qualifying period of the basic old-age pension, established by section 26 of the National Pension Act, will be reduced from 25 to ten years; this amendment will enter into force in October 2015.

The Committee hopes that in its next report the Government will provide more detailed explanations on these amendments.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the information provided by the Government in its report and, in particular, that concerning the application of Article 29, paragraph 2, of the Convention, which was the subject of its direct request of 2002. It also notes the comments made by the Japanese Trade Union Confederation (JTUC–RENGO) and the Government’s reply to them attached to the report.

The JTUC–RENGO alleges in particular that the number of employees protected by the health insurance and the pension insurance is decreasing year after year due to the increasing number of non-regular workers, including part-time and temporary workers, who are exempted from coverage when working less than three‑quarters of the normal working hours. In 2006, non-regular workers made up one third of all employees in Japan. The JTUC–RENGO called on the Government to relax the exemption criteria so that all workers, regardless of being regular or non-regular, are covered by the insurance schemes. In reply, the Government indicates that in 2007 it has submitted to the Diet the Bill for unifying employees’ pension schemes in order to extend the coverage, inter alia, to persons who work 20 or more scheduled working hours. The Bill stipulates however that small and medium-sized enterprises with 300 or less employees will be allowed an exemption from the new criteria as a measure to moderate the impact on business management. The Committee would like the Government to specify classes of employees prescribed under Articles 15(a) and 27(a) of the Convention that are covered by the health insurance and the pension insurance schemes. It notes that the statistics on the number of employees protected and the total number of employees in the country given in the report refer under Article 15(a) to figures of 2005–06 and under Article 27(a) to figures of
1999–2000, which do not correspond to the data for the same period given in the previous report of the Government. The Committee would therefore ask the Government to provide updated statistics required in Title I under Article 76 of the Convention for the same time period indicating the source of data. With regard to the Bill referred to by the Government, it would like to receive a copy of it, once adopted by the Diet, together with the translation into English of the relevant provisions concerning coverage. In addition, the Committee would like the Government to indicate how many workers are employed in the small and medium-sized enterprises with 300 or less employees, which might be excluded from the health and pension insurance coverage under the new Bill.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee took note of the information provided by the Government in its report of 2001, which contained replies to the Committee’s observation of 2000 and the direct request of 1997.

Part V (Old-age benefit), Article 29, paragraph 2, of the Convention. In its previous direct request, the Committee asked the Government to state whether a protected person who has completed a qualifying period of 15 years of contribution or employment prior to the retirement age, but who cannot validate 25 years of residence in Japan, will be entitled to a reduced old-age pension in accordance with this provision of the Convention. In reply, the Government indicates that the periods of residence abroad of Japanese persons are included in the qualifying period of 25 years as complementary periods but not taken into account for the calculation of the amount of the pension. Besides, having a contribution period of 25 years is not necessarily a condition for receiving the benefit, as provisions exist for contribution exemption and retroactive pay. The Committee notes this information with interest. It would like the Government to indicate whether a Japanese person, born abroad, who comes to reside in Japan for the first time and becomes insured under the National Pension Law at the age of 50 years, will receive an old-age pension when he or she retires at the age of 65 having fulfilled a qualifying period of 15 years of residence and contributions, and how this pension will be calculated.

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

The Committee notes the communications from the Pensioners’ Union (Kobe Port Liaison Committee) dated 1 September 1999 and 1 September 2000, containing observations on the alleged deterioration of the dockworkers’ compensation system and encouraging the ratification by Japan of the Dock Work Convention, 1973 (No. 137). It also notes the Government’s communication stating its intention to submit its comments on the Union’s observations in its next annual report on Convention No. 102. The Committee therefore hopes that the Government’s next report will contain a reply to the comments to the aforementioned organization as well as to the Committee’s previous direct request.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

Part V (Old-age benefit), Article 29, paragraph 2, of the Convention. In reply to the Committee's previous comments, the Government indicates that old-age employees' pension requires the beneficiary to fulfil the qualifying period of 25 years under the national pension scheme, but since all those within the age group of 20-59 residing in Japan are obliged to contribute to the national pension, everybody will have fulfilled the qualifying period of 25 years by the time they reach the age of receiving the benefit. The Committee asks the Government to indicate whether the protected person who has completed a qualifying period of 15 years of contribution or employment prior to the age of entitlement to a pension, but who cannot validate 25 years of residence in Japan, having resided abroad, is entitled to a reduced old-age employees' pension in accordance with the above-mentioned provision of the Convention.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

Part V (Old-age benefit), Article 29, paragraph 2, of the Convention. The Committee notes from the Government's report that the total minimum qualifying period for entitlement to old-age pension is 25 years. It asks the Government to indicate whether, and if so under which provision of the law, protected persons who have completed a qualifying period of 15 years of contribution or employment, prior to the age of entitlement to a pension, are entitled to a reduced old-age pension in accordance with the provision of this Article of the Convention.