Changes coming in Japan's tax code from 2017

Another change is that salaried workers over age 65 will now be obliged to make contributions to the unemployment tax scheme (“koyo hoken”). Of course, by the same token, workers over age 65 will be eligible to receive payouts, which can also be applied to those who need to take time off from work to provide care for an enfeebled family member. Unfortunately, paid child leave time will be cut from one year to six months.

It would certainly help if the writer of this article takes a look at this paragraph and edit as necessary. It makes it sound like someone over the age of 65 will only be able to get "paid child leave" for 6 months, instead of one year.

Now just how many seniors over the age of 65 need "paid child leave?"

Another change, to take effect from next October, is one likely to be heartily welcomed by workers of the foreign persuasion:

But please keep in mind that those who only pay in for the minimum of 10 years will receive benefits proportional to the amount paid into the system. Meaning it won't be much.

Now just how many seniors over the age of 65 need "paid child leave?"

Mick Jagger?? :-)

Seriously, will it be allowed for grand-child care? If Abe wants more younger women in the workforce and there still aren't enough daycare places, then it could be that increasing numbers of Grans or Gramps will have to quit work to look after Junior.

those who only pay in for the minimum of 10 years will receive benefits proportional to the amount paid into the system. Meaning it won't be much

You aren't suggesting that it would be fair for people who have paid in only 10 years to get as much as those who have paid in for much longer?

If people have paid in, then they should get back proportionally. That includes the non-working, non-contributing housewives who currently get a free pension.

But please keep in mind that those who only pay in for the minimum of 10 years will receive benefits proportional to the amount paid into the system. Meaning it won't be much.

Up to now it's been zero.

That is huge news!

All that glitters...

The reduction in years of pension contributions needed to receive a pension is welcome, although I'm nearly at 25 years now anyway.

But don't expect to be living the life of Riley on your Japanese pension. I think the national pension scheme pays around Y80000 per month after 40 years contributions. If you pay in for 10 years you might get about Y20000 per month. Still, something is better than nothing. Company schemes should pay more, assuming they also reduce the number of years of payments required to 10.

@Scrote "I think the national pension scheme pays around Y80000 per month after 40 years contributions. If you pay in for 10 years you might get about Y20000 per month." I paid in for 25 years and receive a montly payment of 38.000 yen from which 7.000 yen is deducted for kaigo (geriatric care). 31.000 yen per month is certainly not enought to live on.

If you paid kokumin nenkin only, the amount's not going to be much. Kigyo nenkin and/or Kosei nenkin, in which your employer contributes half, will be much more. In my case I paid 19 years of Kigyo and Kosei, plus 6 years of kokumin. After deductions for health insurance I get about 100,000 per month. Also receiving foreign social security based on what I paid during military service. Every little bit helps. Fortunately I don't have an extravagant lifestyle.

Now just how many seniors over the age of 65 need "paid child leave?"

Mick Jagger?? :-)

He'll also need paid great-grandchild leave too!

Until they fix the ridiculous 55% marginal tax rate, they're just tinkering.

I had no idea that the pension payments were so low. I thought I would never get one so I never bothered to check into. Now that I am going to get a pension, on one hand the amount is disappointing and a small fraction of what they have taken from my pay. But as someone said above, it was zero so anything more than that is a blessing.

For those whom have paid in less than 25 years.

There are many treaties Japan has with other countries that would entitle you to Japanese pension payments even if you haven't paid for the minimum required numbers of years. I.e. the number of years you've paid into your countries national pension scheme will be added tot the number of years you've been paying in Japan, thus entitling you to some money in Japan.

Reducing the requirement to 10 years will make it easier to reach entitlement even if you're not able to pay for 10 years in Japan.

Check japan.org , it will give you a lot of information, lot of legal stuff to read though :p

Blacklabel - If the premiums were taken from your pay, you're likely paying kigyo/kosei nenkin, not kokumin nenkin; the pension for that tends to be a good bit higher. You should check it out.

thanks for the advice and information, I will check it out. I hadn't considered it because it didn't apply to me until now. Any money back is better than nothing!

Thanks for the great info everyone. Very helpful.

couldn't correct... the correct link is japantax.org

If you are American and will collect Social Security and a Japanese Pension, you have to declare the Japanese Pension under a program called WEP. It was originally started to avoid double dipping. It really affects people badly.

My wife told me that business owners hoping to pay their sales taxes or other such taxes through a credit card will be subject to a service charge of 1% or even more in some cases. I assume that this is the fee that the credit card companies are charging and it is simply being passed on, but this is an important point to consider if you really want to do it or not.

The way the population is in decline means that there won't be a pension in the future as there won't be any funding for it......

Have trouble understanding taxes? That's why it's called a tax CODE,

Har har har ...