The previous blog posts (1st, 2nd) describe the three timing scenarios when you change job and the preference order in light of PR application in the future. It is recommended to have no interruption at all even for a day between two employment periods as the most preferred timing scenario.
There are however circumstances where you have to have interruption in-between. This post describes what you have to do in such a case.
Enrollment with Health Insurance
Choices of Health Insurances to Cover Interrupted Period
In the previous blogs, health insurance to cover interruption is simply set to Tier 1 National Health Insurance, because it is applicable to all cases. There are however other alternatives available, depending on your situations.
Health insurance Alternative 1 (HA1): Be enrolled with your spouse’s Tier 2 health insurance as a dependent
This alternative is available when your spouse is enrolled with his/her own Tier 2 health insurance and you can be enrolled with it as a dependent family member. It should be noted that there are criteria, to be registered as a dependent, especially of income amount (including unemployment benefits if any) that has to be lower than a threshold amount set by the spouse’s health insurance.
This alternative is attractive because there is no additional insurance premium required, Premium, that your spouse pays through deduction from his/her salary, covers dependents. Please contact HR team of your spouse’s company to find out if you would be eligible as a dependent..
Dependent family members are also covered by your spouse’s Tier 2 health insurance as well.
Health insurance Alternative 2 (HA2): Continue your enrollment with Tier 2 health insurance of the previous company you leave
Another alternative is to continue your enrollment with Tier 2 health insurance of your previous company you leave. This is called as “任意継続 (Nin-i Keizoku)” in Japanese, meaning as “optional extension of enrollment”.
Please note the following when you consider this option:
- You are eligible to apply for this Nin-i Keizoku, if you:
- Have 2 months or longer of enrollment and premium payment history for the health insurance of your previous company, AND
- Apply within 20 days after leave from the company.
Unlike HA2 above, you have to pay insurance premium and the amount is doubled because you have to pay not only for 50% as an employee part but also for the rest of 50% that an employer subsidizes. The later is a benefit that only an employed person can enjoy.
Coverage of dependents is however maintained, so that premium for the dependents is not required as it is not so when you are employed. This Nini-Keizoku program continues for 2 years at maximum, an upper limit set for duration of enrollment. You are not allowed to withdraw and switch to the alternatives of HA1 nor HA2 above during interruption. Once you start your next employment and your interruption is over, then you can withdraw from the Nini-Keizoku program, though.
Dependent family members are also covered by this optionally extended enrollment as well.
Health insurance Alternative 3 (HA3): Be enrolled with Tier 1 National Health Insurance
In case you are not eligible to take the two alternatives above, you have to choose this alternative.
This is the default alternative applicable to all cases. It should be noted that you have to pay premium for your dependent family members, unlike your Tier 2 health Insurance where dependent family members are covered for no additional premium.
Dependent family members are also enrolled with National Health Insurance as well.
Enrollment with National Pension
Unlike health insurance alternatives discussed above, there is only a single choice of public pension for interruption, National Pension. As stated in the previous blog, pension enrollment and premium payment go monthly basis and are determined on the last day of a month, if your interruption does not go beyond month-end, you do not have to be enrolled with National Pension.
Choices of Pension to Cover Interrupted Period
There are two alternatives for enrollment in National Pension to cover interrupted period going over month end.
Pension Alternative 1 (PA1): Be enrolled as a dependent spouse of your spouse’s Tier 2 Employee Pension (National Pension Type 3)
This alternative is available when your spouse is enrolled with his/her own Tier 2 Employee Pension and you can be enrolled with it as a dependent spouse. It should be noted that there are criteria, to be registered as a dependent, especially of income amount (including unemployment benefits if any) that has to be lower than a threshold amount set by Japan Pension Service.
This alternative is attractive because there is no additional insurance premium required, Premium, that your spouse pays through deduction from his/her salary, covers a dependent spouse. Please contact HR team of your spouse’s company to find out if you would be eligible as a dependent spouse.
Pension Alternative 2 (PA2): Be enrolled with National Pension as a regular insured (National Pension Type 1)
In case you are not eligible for the alternative abovePA!, you take this one and enroll yourself as a regular insured of National Pension Type 1.
If you have a dependent spouse who has been Type 3 insured of National Pension, your spouse’s type has to be changed also to Type 1. With this change your spouse becomes liable to pay pension contributions as a regular insured, that had been exempted as Type 3 insured.
This change in contribution liability is often overlooked. If it is overlooked and payment becomes overdue or late payment, it will likely make your future PR application disapproved. Please take good care of pension contribution payments, not just of yours but also of your spouse’s if you plan to apply PR in the future.
Pension for dependent spouse
For pension, your dependent spouse has to change his/her insured type of Tier 1 National Pension from Type 3 to Type 1. With this change, your dependent spouse has to pay premium for his/her own National Pension. Such premium payment is exempted while your dependent spouse is the insured Type 3. Only Type 3, a dependent spouse of a Tier 2 partner, can enjoy this exemption.
This change in the type and the cease of exemption are often overlooked and becomes a reason of rejection for permanent resident (PR) application. Those who plan to apply for Japan PR in the future should make sure this change properly taken place in addition to your own change.
Saving income tax by tax return procedures
Amount of payments for health insurance and pension you make for yourself and dependent family members can be deducted from your taxable income. You should keep all of receipts and consider filing tax return form to save your tax.
Please browse another article in this web site for details if you are interested, This article discussed tax saving particularly for social insurance payments for your dependent spouse. The same tax saving scheme is applicable to payments for yourself as well.
Due date of payment for health insurance and pension
You have to make sure paying for health insurance and/or pension by their due dates. Immigration Office reviews payment records for heather last two years to see if all payments were made by due date. Your PR application is likely to be denied if you have any payment missed out or paid overdue. Due date of health insurance and pension is normally as follows.
- Heath Insurance: Last day of the month
- Pension: Last day of the next month
In addition to paying every month, there are other payment methods available, e.g. automatic withdrawal from a bank account and payment in advance. It is recommended to consider these alternative payment methods and make sure not to have any any unpaid premium nor late payment.
Keep all of receipts of your payments for health insurance and pension
It is recommended to file receipts and/or bank account records as a proof of payment in case you pay for health insurance and/or pension by yourself. You will be requested to submit a copy of such records as a proof of your payments by due dates for the latest two years when you apply for PR. At time of writing this blog post in 2022, there is no other easy way to prove the payments, so that filing the payment records is required for your future PR application.
Summary of Health Insurance and Pension for Interrupted Period
Topics discussed in this blog post are summarized in the PDF page below.Best-Scenario-for-PR-application-when-Changing-Job-31
For details, please contact the following:
- Health Insurance
- HA1: HR of your spouse’s company
- HA2: HR of your previous company
- HA3: City or Ward office of your residence
- PA1: HR of your spouse’s company
- PA2: Local office of Japan Pension Service of your residence