Koyo Hoken: A Guide to Unemployment Insurance in Japan

Navigating Japan’s employment system can be challenging, especially when it comes to unemployment support. Koyo Hoken (雇用保険) offers financial assistance to those who lose their jobs. In this post, we’ll cover everything you need to know about Koyo Hoken, from eligibility and benefits to how to apply.

What is Unemployment Insurance (Koyo Hoken)?

Koyo Hoken is part of Japan’s social insurance system, aimed at supporting workers who lose their jobs. It provides temporary financial assistance to help individuals while they seek new employment, as well as access to job-hunting support services like Hello Work, Japan’s government-run employment centers.

Who is Eligible for Koyo Hoken?

To qualify for Koyo Hoken, you must meet the following conditions:

1. Enrollment in Koyo Hoken: Most full-time employees and some part-time workers are automatically enrolled in Koyo Hoken by their employers. It is mandatory for those working more than 20 hours a week and who plan to be employed for at least 31 days.
2. Minimum Employment Period: You must have been enrolled in Koyo Hoken for at least 6 months within the last two years to be eligible for unemployment benefits.
3. Reason for Job Loss: Koyo Hoken covers individuals who lose their job due to reasons beyond their control, such as layoffs or contract terminations. However, if you voluntarily quit your job, you can still receive benefits, though there might be a longer waiting period before payments begin.

Types of Unemployment Benefits

Under Koyo Hoken, there are different types of benefits depending on your employment status and reason for unemployment.

1. Basic Allowance (基本手当, Kihon Teate): This is the main type of benefit paid to unemployed individuals. It covers day-to-day living expenses while you search for a new job.
   • Amount: The amount of the Basic Allowance is calculated based on your salary over the past six months. Typically, it’s around 50% to 80% of your average daily wage, with a cap depending on your age group.
   • Duration: The benefit period ranges from 90 to 330 days, depending on your age, length of employment, and the reason for unemployment.
2. Early Reemployment Benefit (再就職手当, Saishūshoku Teate): If you find a new job quickly (within a few months), you may be eligible for an early reemployment bonus. This benefit is a lump sum payment intended to encourage fast reemployment.
3. Extended Benefits (延長給付, Enchō Kyūfu): In special cases, such as unemployment due to industrial accidents or bankruptcy, extended benefits may be available. These allow you to receive payments for a longer period.

How to Apply for Unemployment Insurance

Follow these steps to apply for Koyo Hoken benefits after losing your job:

1. Get Your Rishoku-hyo (離職票):

After you leave your job, your employer will issue a document called the Rishoku-hyo (Certificate of Separation). This is a crucial form that states your reason for leaving the job, the period of employment, and your salary information. Make sure to request this from your employer if they don’t automatically provide it.

2. Visit Hello Work:

With your Rishoku-hyo in hand, visit your local Hello Work office to begin the application process. You’ll also need to bring:

• Your My Number Card or Notification Card.
• Your ID (such as a residence card or passport).
• Two recent passport-size photos.
• Your bank account information for direct deposit.

3. File Your Application:

Once you submit your application, Hello Work will process it, and you’ll attend a short orientation. This orientation provides details about the benefits, your obligations, and job-seeking support.

4. Waiting Period:

After your application is accepted, there’s a standard 7-day waiting period during which you won’t receive benefits. If you voluntarily left your job, this waiting period may extend up to three months.

5. Receive Your Benefits:

After the waiting period, benefits are typically paid out every four weeks. You will need to attend job search activities, report your job search progress, and meet with Hello Work staff regularly during this period to continue receiving payments.

Frequently Asked Questions about Koyo Hoken

In Conclusion

Koyo Hoken is an essential safety net for workers in Japan, providing financial support and resources to help you get back on your feet after losing your job. By understanding how the system works and following the necessary steps, you can ensure that you receive the benefits you’re entitled to.

If you ever find yourself in a situation where you need to apply for unemployment insurance, remember that Hello Work is there to support you—not only with financial assistance but also with job-hunting services to help you get back into the workforce as soon as possible.

If you’re unsure about any part of the process, don’t hesitate to ask for help at your local Hello Work office or reach out to a professional for guidance.