Question:

If I hire a foreign employee, do I have to get Japanese social insurance?

Answer:

Yes!

By law, residents of Japan, regardless of country of citizenship, must be enrolled in social insurance schemes.

This means that in most cases, foreign employees will be dual enrolled. However, foreign residents from countries that have an agreement with Japan can qualify for an exemption from the system in their home country if they meet certain requirements.

Regardless of agreements, if and when a foreign resident stops residing in Japan and meets certain requirements, they can apply for a partial refund.

Let’s take a look at the tax form of residence “resident” and “nonresident”.

->What is a resident?

A resident is an individual who has a domicile in Japan or who has been living in Japan for at least one year. Residents are further divided into permanent residents and non-permanent residents.

For example, if the contract period is 1 year, you will stay for more than 1 year, so you can be considered as a resident when you come to Japan. Therefore, you need to take out social insurance.

->What is a nonresident?

Nonresidents are individuals who are not residents.

Non-residents cannot take out Japanese social insurance, so I recommend you to take out travel insurance equivalent to social insurance that covers your period of stay.