Monday, August 31, 2009

Social Insurance Crackdown

In addition to my previous entry on the Alien Registration System, it is worth noting that this is not the only area of "change" or crack down with regard to foreigners and foreign workers.

As of April 2010, the regional immigration bureau will start requesting proof of tax payments (ie. tax certificates) and proof of Japanese social insurance coverage (from the local authorities) in order to approve applications for either an extension of period of stay or a change of residence status.

Local employment insurance authorities have already started requesting lists of foreign national employees from employers.

This is going to be a big blow for companies that have encouraged foreign employees to take out their own health insurance and not pay pension dues (nenkin) in order to maximize their monthly take home pay. I can see a number of English schools trembling in their shoes, as they realize they will now have to convince their teachers that they will have to be enrolled accordingly and then themselves take responsibility for half of the cost of the social insurances, like the remainder of companies in Japan.

It would appear that both national and local authorities are going to police foreigner residential and working details more strictly going forward. Therefore, if you have been dodging the bullet at your company, it might be time to come clean before it is too late!

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