Social Insurance and Employment Insurance for Foreign National Employees: The Basics [Licensed Immigration Specialist]
A licensed immigration specialist explains the enrollment requirements, procedures, and foreign national-specific considerations — including social security agreements, the lump-sum withdrawal payment, and Working Holiday treatment — for social insurance (health insurance and employees' pension), employment insurance, and workers' accident compensation insurance.
Social insurance and employment insurance for foreign national employees are assessed using the same standards as for Japanese nationals. "Foreign nationals don't need to be enrolled" is a misconception — the obligation to enroll arises whenever the eligibility criteria are met. However, there are also foreign national-specific issues such as social security agreements, the lump-sum withdrawal payment, and differences by visa status. This article covers the essentials.
Fundamental Principle: No Differentiation by Nationality
Japan's social insurance and labor insurance apply to foreign nationals who are legally employed on a visa status that permits work using the same standards as for Japanese nationals. Nationality, visa status type, and whether the person intends to live in Japan permanently have no bearing on the eligibility criteria for enrollment.
Health Insurance and Employees' Pension Insurance (Social Insurance)
When the Enrollment Obligation Arises
Any incorporated entity (including kabushiki kaisha and godo kaisha) that employs even one employee becomes a mandatorily applicable workplace, and is obligated to enroll all employees who meet the eligibility criteria in health insurance and employees' pension insurance.
Full-time employees (weekly prescribed working hours at or above 3/4 of full-time, generally 30 hours or more per week) are in principle subject to enrollment.
For part-time workers (part-time and casual employees), enrollment is required when all of the following conditions are met:
- Workplace with 51 or more employees (specified applicable workplace)
- Weekly prescribed working hours of 20 or more hours
- Monthly wages of 88,000 yen or more
- Employment expected to continue for more than 2 months
- Not a student
Procedures
Within 5 days of the employee's start date, submit an "Application for Insured Person Enrollment — Health Insurance and Employees' Pension Insurance" to the relevant pension office or health insurance association.
For foreign nationals who have not yet been issued a My Number, submission of a "Romanized Name Declaration" is required.
Employment Insurance
Enrollment Criteria
Foreign national workers who meet both of the following conditions are subject to employment insurance enrollment:
- Weekly prescribed working hours of 20 or more hours
- Employment expected to continue for 31 days or more
Key Points by Visa Status
International students working part-time are generally excluded from employment insurance enrollment while they are daytime students. However, those who are expected to graduate and continue working at the company after graduation, or those currently on a leave of absence from their studies, are subject to enrollment.
Procedures
After hiring, submit an "Application for Insured Person Enrollment — Employment Insurance" to Hello Work by the 10th of the following month. This procedure also serves as the Foreign National Employment Status Notification.
Enter the residence card number in the nationality and visa status field on the application form.
Workers' Accident Compensation Insurance
Workers' accident compensation insurance applies to all workers. Regardless of employment type, visa status, or nationality, any employer who employs even one worker has an obligation to enroll. Premiums are paid entirely by the employer.
Even a foreign national who is working illegally is entitled to workers' accident compensation insurance benefits if they are injured in a workplace accident while performing work as a laborer.
Foreign National-Specific Issues
Social Security Agreements
Japan has concluded social security agreements with multiple countries, including Germany, the United States, and France (in force with 23 countries as of November 2025).
Foreign nationals dispatched from a country with which Japan has an agreement who are temporarily working in Japan may, under certain conditions, be exempt from enrollment in Japan's pension system and remain enrolled only in their home country's system. This prevents double payment of insurance premiums.
Lump-Sum Withdrawal Payment
A foreign national who has been enrolled in employees' pension insurance for 6 months or more and returns to their home country may claim a "lump-sum withdrawal payment" within 2 years of the date they no longer have an address in Japan. This is a system that refunds a portion of the premiums paid.
When a foreign national employee resigns and returns home, explaining this system and supporting the claim process helps prevent future disputes.
Enrolling Family Members as Dependents
It is possible for a foreign national employee to add family members as dependents under health insurance, but the following conditions apply:
- The employee is supporting the family members financially
- The family members have an address in Japan (a registered residence)
Generally speaking, family members living abroad cannot be added as dependents.
Frequently Asked Questions
Q. My foreign national employee says they "don't want to join the pension because they're going to return home eventually." Do we still need to enroll them?
A. If the employee meets the eligibility criteria, the company is obligated to enroll them regardless of their preference. It is important to explain that there is a lump-sum withdrawal payment system that returns a portion of contributions when they leave Japan, so they understand the intent behind the system. Leaving them unenrolled exposes the company to the risk of penalties and additional charges.
Q. We have a foreign national on a short-term employment contract (3 months). Do they need to be enrolled in social insurance?
A. Contracts of 2 months or less are generally not subject to health insurance and employees' pension insurance, but a 3-month contract is subject to enrollment. In addition, if it is expected in practice that employment will continue for more than 2 months, enrollment is required from the outset. The assessment is based on the actual employment situation, not the formal contract period.
Q. Are there any foreign national-specific documents required for social insurance procedures?
A. For foreign nationals who have not yet obtained a My Number, submission of a "Romanized Name Declaration" is required for health insurance and employees' pension insurance procedures. It is also important to verify that the romanized spelling of the name matches the passport. The employment insurance enrollment application includes a field for the residence card number.
Q. What procedures must the company complete when a foreign national employee resigns and returns home?
A. Submit a "Notice of Loss of Insured Person Status — Health Insurance and Employees' Pension Insurance" (the date of loss is the day after the resignation date) to the pension office. Also submit a "Notice of Loss of Insured Person Status — Employment Insurance" to Hello Work. These procedures also serve as the Foreign National Employment Status departure notification. We also recommend explaining the lump-sum withdrawal payment system to the employee.
Summary
The fundamental principle for social insurance and employment insurance for foreign national employees is "assess based on the employment situation, not nationality." If a foreign national holds a visa status that permits work and meets the eligibility conditions, the same enrollment obligation applies as for Japanese nationals.
Being familiar with foreign national-specific issues — such as the exemption from double enrollment under social security agreements, the lump-sum withdrawal payment, and the exclusion of Working Holiday visa holders from employment insurance coverage — will help prevent disputes after hiring.
If you have questions about procedures or are uncertain about individual cases, please consult a social insurance labor consultant (shakai hoken roumushi) or a licensed immigration specialist.
This article is based on official information from the Japan Pension Service and the Ministry of Health, Labour and Welfare, as well as practical experience. Details of the rules vary depending on individual circumstances. Always verify the latest information on each official website.
RELATED ARTICLES