Fukuri Kousei (福利厚生) is Employee Benefits in Japan

Fukuri Kousei (福利厚生) is Japanese for “employee benefits”. For those interested to work in Japan, learn about what type of employee benefits are available in Japan.

Table of Contents

1. What is Fukuri Kousei (福利厚生)?
2. Statutory Employee Benefit Payments in Japan
3. Annual Paid Leave and Other Types of Statutory Leave in Japan
4. Non-Statutory Employee Benefits in Japan
5. Work for a Company with Great Employee Benefits
6. Find a Job in Japan with WeXpats

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What is Fukuri Kousei (福利厚生)?

Fukuri Kousei (福利厚生), aka “Employee Benefits”, are perks and compensation that is provided by the employer to its employees and are separate from an employee’s earned wages.

Employee benefits in Japan include those mandated by law to voluntary benefits. The purpose of companies providing employee benefits is to improve the overall well-being of employees. In return, companies benefit from improved employee motivation, employee retention and talent acquisition. 

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Statutory Employee Benefit Payments in Japan

In Japan, there are a number of statutory benefits that companies are legally required to provide to their employees. These are designed to ensure that all workers have access to basic healthcare, financial security, and protection in case of emergencies such as injury or unemployment.

Social Insurance (社会保険, Shakai Hoken)

Social Insurance consists of 5 essential types of insurance: 

1. Health Insurance (健康保険, Kenkou Hoken) - Public health insurance to help reduce the financial burden of medical treatments including hospitalisation, doctor visits and prescription medicine. Employers pay half.
2. Pension Insurance (厚生年金, Kousei Nenkin) - To stabilise the livelihoods of people facing troubles, includes old-age pension, disability pension and survivor’s pension. Employers pay half. 
3. Employment Insurance (雇用保険, Koyou Hoken) - To provide financial support for employees that become unemployed. Employers contribute based on a ratio that varies by job type.
4. Workers’ Accident Compensation Insurance (労災保険, Rousai Hoken) - To reduce financial burden of medical treatments for injury, illness or death caused by workplace injury or work commute. Employer fully responsble to pay.
5. Nursing Insurance (介護保険, Kaigo Hoken) - To reduce financial burden from using nursing care services. Employer pays half. 

Child and Child Rearing Contribution (子ども・子育て拠出金, Kodomo/Kosodate Kyoshutsukin)

This is a contribution provided by the employer to the employee to help establish and secure the necessary financial resources for child-rearing. Employees do not need to join or pay anything. Employers are fully responsible for the amount of contributions. 

Annual Paid Leave and Other Types of Leave in Japan

Annual paid leaves are an important part of employee benefits in Japan. The leaves described below are provided by law. 

Annual Paid Leave - 年次有給休暇 (Nenji Yuukyuu Kyuuka)

Full-time employees and part-time employees are entitled to a minimum amount of annual paid leave provided certain requirements are met. These conditions are:

• 6 months of continuous service with the company
• 80% attendance 

Full-Time Employees

Full-time employees (or anyone who works at least 30 hours a week) are entitled to receive 10 to 20 days of annual paid leave based on the number of years of continuous service. 10 days of paid leave is granted after working 6 months in the company, and the minimum number of paid leave is 20 days for 6.5 years or more of continuous service. 

Part-Time Employees

Part-time employees (or anyone who works less than 30 hours a week) are entitled to annual paid leave based on the number of workdays a week, number of days worked a year, and years of continuous service. 

• 1 day a week / 48 to 72 days a year: 1 to 3 days
• 2 days a week / 73 to 120 days a year: 3 to 7 days
• 3 days a week / 121 to 168 days a year: 5 to 11 days
• 4 days a week / 169 to 216 days a year: 7 to 15 days 

Keep in mind these are the minimum that must be provided by law. There are companies that offer more paid leave days to loyal employees. 

※ MHLW, “年次年次有給休暇の付与日数は法律で決まっています” [PDF]

Menstruation Leave - 生理休暇 (Seiri Kyuuka)

Women who find it extremely difficult to work during their period are entitled to take leave (paid or unpaid), and she cannot be forced. This law is applicable regardless of employment type (part-time, contract, etc.) or occupation. 

Maternity Leave - 産前産後休業 (Sanzen Sango Kyuugyou)

Female employees are entitled to take maternity leave 6 weeks before giving birth and 8 weeks since giving birth. Women can return to work as early as 6 weeks after giving birth provided they have obtained a doctor’s approval. 

Childcare Leave - 育児休業 (Ikuji Kyuugyou)

Parents of infants under the age of 1 years old are entitled to childcare leave. For women, childcare leave is usually taken after the end of maternity leave (above). For men, it is usually taken from when the baby is born. 

Childcare Leave - 育児休暇 (Ikuji Kyuuka)

※ Note the difference: 育児休業 (Kyuugyou) vs 育児休暇 (Kyuuka)

A system that allows employees who are raising children (up to elementary school age) to take up to 5 days leave a year for childcare purposes. 

Nursing Care Leave - 介護休業 (Kaigo Kyuugyou)

For employees to care for a family member who is in need of nursing care. The family member should be in a condition that requires constant care for a period of 2 weeks or more due to injury, illness, physical disability or mental disability.

Nursing Care Leave - 介護休暇 (Kaigo Kyuuka)

※ Note the difference: 介護休業 (Kyuugyou) vs 介護休暇 (Kyuuka)

Similar to Childcare Leave (Ikuji Kyuuka), this system allows employees who have family members in need of nursing care to take up to 5 days leave a year for nursing care purposes. 

Medical Checkup - 健康診断 (Kenkou Shindan)

Employers are required by law to provide medical checkups to its employees. The medical checkup is usually covered by the company and reminders are issued to all employees. Most companies have a designated clinic where all employees are to get examined within a designated period, while some companies allow employees to have free-reign over when and where to get examined and forward the bill or claim a refund from the company. 

Non-Statutory Employee Benefits in Japan

Non-statutory employee benefits are provided by the companies voluntarily. There are no regulations regarding what type and how much of the benefit should be provided. 

In recent years, more and more companies are offering voluntary employee benefits. Offering special leave and allowances improves the company’s image and appeals to talented individuals to join the company. 

When choosing a company to work for, take a look at what benefits they offer in addition to salary and bonuses.

Below we introduce various types of employee benefits.

Health Benefits

Examples of employee health benefits include providing gym membership, subsidising medical expenses for smoking rehabilitation clinics, and setting up mental health consultation desks. There are also companies that offer healthy company meals.

Companies are required by law to conduct medical checkups. Well, an increasing number of companies are covering the costs of more detailed medical checkups as employee benefits. 

Holiday Benefits

In addition to the paid holidays required by law, many companies also provide special holidays as employee benefits. Below are some examples of special leaves.

• 慶弔休暇 (Keichou Kyuuka): for births, marriages, or deaths in the family
• Birthday Leave: can be taken during your birthday month
• リフレッシュ休暇 (Rifuresshu Kyuuka): “refresh leave”, employees can take vacation days according to the number of years of service as a reward for long service
• Anniversary Leave: for wedding anniversaries and children’s birthdays
• Summer and Winter Leave: for summer break and year end new year holidays

Special leave doesn't necessarily mean that it is paid leave, but may be treated as absence. However, it will not affect attendance rate or evaluation. 

Other types of special leave such as nursing care leave, child care leave, menstrual leave, etc. are required by law. 

Commuting Benefits

Commuting benefits are one of the most common voluntary benefits offered by companies. Some companies pay the full amount, while others set a monthly limit. In many cases, employees are reimbursed for train fare, bus fares, and even parking and gas for their car. 

In recent years, some companies have began to offer “short distance allowances (近距離手当)” to employees who live close to their workplace. This is because having employees live close to their workplace comes with advantages of reducing commute burden and increasing work efficiency. 

Meal and Break Benefits

Benefits related to meals include company cafeteria, lunch subsidies, lunchbox delivery service, free coffee, free snacks, etc. 

Some companies offer enhanced break times, such as beds for afternoon naps, massage chairs, library space or relax space. 

Housing Benefits

Housing allowance, such as rent allowance, that helps subsidise rent and mortgage payments are available at many companies. The amount varies by company. It is common to set the amount as a certain percentage of rent or a fixed amount. Another typical housing benefit is company dormitories which are provided for free or at a low cost to employees. 

Event Benefits

A typical example of event benefits is company trips. This is an employee benefit that has long been practised mainly by small and medium-sized companies. Some companies even arrange to go abroad or spend time at hot springs.

Other examples of event benefits are athletic meets, concerts, and tournaments. Holding events not only deepens relationships but also helps employees relieve stress. 

Skills Improvement Benefits

In recent years, more people are interested in studying and obtaining qualifications to enhance skills. And so, more companies are introducing systems to support their employees in honing their skills. Specifically, they provide financial assistance for books, school fees, and test fees. Some companies also offer a bonus when employees obtain a certain qualification. 

Childcare and Nursing Care Benefits 

Some companies offer these benefits to prevent employees from leaving the company due to the burden of childcare or nursing care. Setting up a daycare centre within the company not only reduces the burden on parents to take their children to and from school, but also provides peace of mind by allowing employees to work near their children. 

Work-style Benefits

Some companies offer reduced working hours (less than 8 hours a day), flextime, hybrid, and/or remote work to employees. These benefits offer employees improved work life balance to better care for their family and health. 

Property Related Benefits

A typical example of property-related employee benefits is the “Zaikei Savings Scheme (財形貯蓄制度)”. Using this system, the company will deduct a fixed amount from your monthly salary, which will be directly deposited into a financial institution to help you save money. There are 3 types of schemes: for any purpose, for pension receivable after the age of 60, and for housing-related expenses. Another advantage of using the Zaikei Savings Scheme is that tax-free interest can be earned. The amount deducted can be as low as 1,000 yen.

Work for a Company with Great Employee Benefits

Choosing a company with comprehensive employee benefits can greatly enhance your quality of life. For example, if you receive a rent allowance of several tens of thousands of yen, you can use that money for savings, shopping, or leisure. Taking advantage of the vacation system in the employee benefits program to create an opportunity to refresh yourself will make you more motivated to work. 

Tips for Finding Companies with Great Benefits

• Research Company Reviews: Websites like Glassdoor or Japanese platforms like OpenWork provide insights into the benefits packages offered by various companies.
• Look for Work-Life Balance Initiatives: Companies that emphasise work-life balance, such as flexible work hours or generous leave policies, often have better employee satisfaction.
• Consider Industry Standards: Certain industries, like tech or finance, tend to offer more competitive benefits than others. It’s essential to consider industry norms when evaluating a benefits package.
• Consult with Recruiters: Recruitment agencies in Japan often have detailed knowledge about the best companies with comprehensive benefits packages, especially for foreign workers.

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