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Self-Employed Workers’ Accident Compensation Insurance in Japan

Self-Employed Workers’ Accident Compensation Insurance in Japan (労災保険=Rosai Hoken)

Due to a revision of relevant laws and regulations (as of September 1, 2021), self-employed delivery workers and IT freelancers who use bicycles can now be covered by workers’ accident compensation insurance (労災保険=Rosai Hoken).

If you are a delivery person with Uber Eats, there is a possibility that you could suffer a traffic accident, which is why you need to be covered by workers’ compensation insurance. So, if you are self-employed, you may want to join Workers’ Accident Compensation Insurance.

🍙What is Workers’ Accident Compensation Insurance (労災保険=Rosai Hoken)?

When a worker suffers an illness or injury related to work or commuting, he or she may be entitled to receive insurance benefits.

When an individual or company hires one or more employees, the employer is required to join Workers’ Accident Compensation Insurance.

All insurance premiums must be paid by the employer.

Workers’ Accident Compensation Insurance also applies to part-time workers.

On the other hand, company directors and self-employed workers are generally not eligible to join Workers’ Accident Compensation Insurance.

🌸Some self-employed persons may join Workers’ Accident Compensation Insurance.

In general, self-employed persons are not eligible for Workers’ Accident Compensation Insurance, but some self-employed persons are similar to employees of a company.

They receive regular orders from a particular company to do their work. So to protect such people, there is a method called special enrollment.

The types of self-employed persons who can take advantage of special enrollment are limited.

Cab drivers and courier delivery workers can also join Workers’ Accident Compensation Insurance through special enrollment(特別加入).

🌻Workers’ Accident Compensation Insurance Cost Amount

Self-employed persons joining Workers’ Accident Compensation Insurance must pay a Workers’ Accident Compensation Insurance premium (premium).

The basic benefit daily amount (基礎給付日額) must be determined in the range of 3,500 yen to 25,000 yen.

If the amount of 基礎給付日額 is 10000 yen and you are a delivery person, your annual premium (like taxation)will be as follows

10000 yen x 365 days x 1.2% = 43800 yen/year

This percentage (e.g., 1.2%) varies depending on the nature of the work.

For IT engineers, the percentage is 0.3%, because IT engineers are less likely to be injured than package delivery workers.

Benefits of Workers’ Accident Compensation Insurance

Self-employed workers do not have to pay for medical expenses if their illness or injury is caused by work or commuting.

If a self-employed person is unable to work due to a work-related injury or illness, he/she is entitled to receive 80% of 基礎給付日額.

Example: 10000 yen x 80% = 8000 yen/day

If a self-employed person is physically or mentally disabled due to a work-related injury or illness, he/she is entitled to receive a disability pension or a disability lump-sum payment.

In addition, if a self-employed person dies, his/her surviving family can receive a survivor’s pension or a lump-sum payment.

Funeral expenses are also paid.

🚙Moving Business Operator

In order to operate a moving business, the operator must file a notification with the government. If she is a sole proprietor and works primarily on her own, she would be eligible to join Workers’ Accident Compensation Insurance.

⛄In the case you are engaging in construction business,  you will be able to use 一人親方. If you are engaging in IT business, you will be able to use 特定作業従事者 method.

Anyway, the category, requirement is complicated.