Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Japan

Social Security (Minimum Standards) Convention, 1952 (No. 102) (Ratification: 1976)
Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980] (No. 121) (Ratification: 1974)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 102 and 121 together.

The Committee notes the observations of the Japanese Trade Union Confederation (JTUC–RENGO) communicated with the Government’s report, and of the Japan Pensioners’ Union (JPU), received on 22 August 2024. The Committee also notes the Government’s reply to the observations made by the JPU.

Part III (Sickness benefit), Article 15, Part IV (Unemployment benefit), Article 21 of Convention No. 102, and Article 4 of Convention No. 121. Workers in agriculture, forestry, and fisheries industries. The Committee notes the observations of the JTUC–RENGO indicating that persons employed by businesses in the agriculture, forestry, and fisheries industries with fewer than five regular employees are exempt from compulsory social insurance. The JTUC–RENGO points out the need to consider extending compulsory social insurance to include these persons. The Committee requests the Government toprovide its comments in this respect.

Part V (Old-age benefit), Article 27 of Convention No. 102. Part-time employees. The Committee notes with interest the Government’s indication in its report that, following legislative amendments in 2020, the Employees’ Pension Insurance scheme was gradually extended to cover part-time workers who work at least 20 hours a week. This extension applies to enterprises with 100 or more employees as of October 2022 and those with 50 or more employees starting in October 2024. The Committee notes the observations of the JTUC–RENGO emphasizing the need to broaden the coverage of the Employees’ Pension Insurance scheme further to include all workers regardless of the size of the enterprise, the number of working hours, or wage level. The Committee requests the Government to continue to provide information on any measures taken to extend the coverage of the Employees’ Pension Insurance scheme.

Article 28of Convention No. 102, in conjunction with Article 65. Replacement rate of old-age benefit. The Committee notes that according to the Government, the replacement rate of the old-age benefit for a standard beneficiary is 49.8 per cent, and that this benefit consists of the following components: (i) the basic old-age pension; (ii) the old-age employees' earnings-related pension; and (iii) the basic old-age pension provided to the beneficiary's dependent spouse.

The Committee notes the observations of the JPU indicating that the reference wage shall include the work-related bonuses provided to employees. The JPU also points out the low average levels of old-age pensions, which do not adequately support the lives of older persons. The JPU indicates that a significant number of older persons live in poverty and that old-age pensions are often lower than the national public assistance level. The JPU further points out that female retirees often receive significantly lower pensions due to insufficient contribution periods often interrupted by childcare responsibilities, wage gaps between male and female workers, and a higher proportion of women in precarious employment.

The Committee notes the Government's reply referring to the legal requirement under the National Pension Act of 2004 to maintain a replacement rate of 50 per cent of the combined basic old-age pension and old-age earnings-related pension for a married couple after a qualifying period of 40 years. The Government also states that any person who meets the national legislation requirements is entitled to the old-age pension, regardless of gender. The Government further indicates the measures taken to promote women's labour participation, pointing out that, according to the 2024 actuarial valuation, women's pensions are expected to increase.

The Committee requests the Government to continue to provide information on the replacement rate of old-age pensions provided to a standard beneficiary. In this regard, the Committee requests the Government to include the work-related bonuses in the determination of both the reference wage and the amount of old-age pension. In relation to gender inequalities that affect social security entitlements, the Committee requests the Government to refer to its detailed comments under the Equal Remuneration Convention, 1951 (No. 100), and the Workers with Family Responsibilities Convention, 1981 (No. 156).

Article 65(10)of Convention No. 102. Adjustment of old-age benefit. The Committee takes note of the information provided by the Government regarding the adjustments of old-age benefits in relation to the cost-of-living and labour income indexes for 2022–2023. The Committee notes the observations of the JPU indicating that, despite a 11.3 per cent increase in consumer prices over the past 12 years, pensions have only risen by 3.5 per cent. In this respect, the JPU points out that the changes in the adjustment rules, including the introduction of macroeconomic indexation, will further lead to a decrease in pension levels. The Committee notes the Government’s reply highlighting the importance of macroeconomic indexation to ensure the sustainability of the pension system and maintain pension levels for future generations. The Committee requests the Government to continue to provide statistical data on the adjustment of old-age benefits in accordance with Title VI of the report form for the Convention. In this respect, it requests the Government to provide this data covering the 6-year reporting period.

Part XIII (Common provisions), Article 71of Convention No. 102. (a) Financing of unemployment benefit. The Committee notes the Government’s indication that as of 2022, the proportion of the National subsidy’s share in the employment insurance scheme depends on the employment insurance financial situation and the employment situation. The Government further indicates that from 1 April 2023, the contributory rate returned to the standard rate of 0.8 per cent.

The Committee notes the observations of the JTUC–RENGO specifying that the National subsidy’s share equals to 25 per cent only in case of deterioration of the employment insurance financial situation and the employment situation, and 2.5 per cent in all other cases. The JTUC–RENGO calls for the restoration of the National subsidy’s share to 25 per cent to stabilize the financial resources for the employment insurance scheme and ensure the stability of the livelihood of insured persons. The Committee requests the Government to continue to provide information on any measures taken to ensure the financial sustainability of the employment insurance scheme.

(b) Financing of old-age benefits. The Committee notes the Government’s indication that the outcome of the actuarial valuation of 2019 confirmed that, in the cases where economic growth and labour participation advance, the model pension benefit level after indexation adjustments generally ensures the replacement rate of 50 per cent or more over approximately 100 years.

Article 26 of Convention No. 121. Prevention of industrial accidents and occupational diseases. The Government indicates the adoption of the 14th Industrial Injury Prevention Plan for April 2023–March 2028, which covers eight priority areas aimed at preventing employment injuries. The Committee further notes the observations of the JTUC–RENGO calling for more effective measures. In particular, the JTUC–RENGO indicates that the number of employment injuries requiring work absences of four or more days increased for the third consecutive year, reaching a total of 135,371 cases. The JTUC–RENGO also emphasizes the urgent need to promote mental health in the workplace due to the increased number of work-related psychological disorders, particularly among small and medium-sized enterprises. Furthermore, according to the JTUC–RENGO, in 2023, the rate of annual deaths and injuries per 1,000 workers was higher among foreign workers (2.77) than among other workers (2.36). The Committee requests the Government to continue to provide information on the measures taken and results achieved in the prevention of industrial accidents and occupational diseases.