Premiums and Standard monthly remuneration
The largest portion of the expenses required for the work of the Health Insurance Society is covered by the "insurance premiums" paid by the insured individuals and the business operators. Insurance premiums consist of "general insurance premiums" that are paid by all insured individuals and "nursing care insurance premiums" that are paid by insured individuals age 40 to age 64.
The insurance premiums you pay are used for insurance benefits and health support business, as well as expenses to support medical care for the elderly.
About Premiums
Monthly premiums are calculated by multiplying the "standard monthly compensation" by the insurance premium rate, and premiums at the time of bonuses are calculated by multiplying the "standard bonus amounts" by the insurance premium rate. They are paid by the insured individual and the business operator. As a rule, the percentages paid by the insured individual and the business operator are 50% each, but the portion paid by the business operator can be set higher than that by stipulating it in an agreement.
The Society's insurance premium rate is announced each March in a notice (public announcement) from the Health Insurance Society.
Method of calculating insurance premiums
- Premiums paid monthly：
Standard monthly remuneration × Insurance premium rate - Premiums paid from bonuses：
Standard bonus × Insurance premium rate
General insurance premiums* are deducted from the monthly salary of insured individuals, and the total insurance premium combined with the business operator's portion is paid to the Health Insurance Society. In addition, when bonuses, etc., are paid, the business operator deducts the insurance premium from the bonus that is paid, combines it with the business operator's portion, and pays it to the Health Insurance Society. In the case of nursing care insurance premiums as well, insurance premiums are deducted from the monthly salary and bonuses of insured individuals age 40 to age 64 at the time they are paid.
* General insurance premiums become the following breakdowns.
insurance
premiums
premiums applied to services such as medical care benefits and health activities
premiums applied to uses such as support payments to the medical care system for the advanced elderly and benefits for persons in the earlier stage of old age.
The Society's insurance premium rates
| General insurance premium rate | Long-term care insurance premium rate | |
|---|---|---|
| Percentage paid by insured person |
42.50/1000 | 10.00/1000 |
| Percentage paid by employer |
42.50/1000 | 10.00/1000 |
| Total | 85.00/1000 | 20.00/1000 |
About standard monthly remuneration
The monthly insurance premiums and paid allowance amounts for social insurance are determined according to the insured individual's salary/wages. The monthly amount of the salary/wages is referred to as "monthly compensation." However, the monthly compensation includes overtime allowances and other non-fixed wages, as well as a variety of other compensation, so it is not rare for the amount to fluctuate each month. Accordingly, it was decided that the monthly compensation would be set as a "standard monthly compensation" with a fixed range, in order to simplify office work and ensure that calculations are accurate. Standard monthly compensation is ranked at 50 levels, from Class 1 (¥58,000) to Class 50 (¥1,390,000), and each class has a range of monthly compensation.
The standard monthly compensation is determined when individuals are hired and become insured individuals, but salaries usually change each year, and sometimes even change month to month. Accordingly, the standard monthly compensation is recalculated using the following method to prevent significant discrepancies between the compensation that is actually received and the standard monthly compensation.
Reference dates for determining your standard monthly remuneration
|
Upon hiring (date on which eligibility begins) |
Determined based on your starting pay and other factors |
|---|---|
|
As of July 1 each year (updated periodically) |
In principle, the standard monthly remuneration for all insured persons is revised as of July 1, based on their remuneration for April, May,and June of that year. The revised standard monthly remuneration will apply to the period from September 1 through August 31 of the following year. |
|
When your remuneration changes significantly (revised as needed) |
Your standard monthly remuneration will be revised if your average monthly remuneration over a period of three consecutive months changes by two or more grades due to a change in fixed wages: for example, when you receive a ralse. |
Your standard monthly remuneration is first determined when you obtain your eligibility as an insured person. However, the standard monthly remuneration is revised every year. It is also revised if your remuneration changes significantly.
The standard bonus
A bonus, bonus, a year-end lump sum, a term-end allowance, the name including the settlement of accounts allowance vary, but the thing paid for value of the labor as follows three times a year becomes a target of the premium. The premiums such as bonuses are decided based on "the amount of standard bonus"
"The standard bonus" is the bonus amount(for these purposes capped at a cumulative annual maximum of 5.73 milliom yen) rounded down to the nearest 1,000yen.
In addition, the amount of standard bonus is not related to an allowance for injuries and diseases and the calculation basics of delivery allowance.