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Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

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)

Other comments on C102

Observation
  1. 2013
  2. 2007
  3. 2000
Direct Request
  1. 2019
  2. 2002
  3. 1997
  4. 1994

Other comments on C121

Observation
  1. 2007
Direct Request
  1. 2019
  2. 2010
  3. 1990
Replies received to the issues raised in a direct request which do not give rise to further comments
  1. 2012

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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 (minimum standards) and 121 (employment injury benefits) together.
The Committee notes the observations of the Japanese Trade Union Confederation (JTUC–RENGO) communicated with the Government’s report, and of the National Confederation of Trade Unions (ZENROREN), received on 22 September 2017. The Committee also notes the Government’s reply to the observations made by the ZENROREN.
Part V (Old-age benefit). Article 27 of Convention No. 102. Part-time employees. In its previous comments, the Committee requested the Government to provide explanations on the legislative amendments (Act No. 62 of 2012) to the National Pension Act and other related Acts, which, among other, extended the coverage of the Employee’s Pension Insurance scheme to part-time employees in enterprises employing 500 workers or more. The Committee notes the information provided by the Government in its report specifying that, as of 2016, the Employees’ Pension scheme was expanded to include part-time employees working at least 20 hours a week in enterprises with 501 or more employees. In addition, those working in enterprises with 500 or fewer employees can participate in the Employees’ Pension scheme if an agreement is reached between workers and the enterprises’ management. The Committee also notes the observations provided by JTUC–RENGO stating that the measures taken to extend the coverage of part-time employees are grossly insufficient and that steps to further extend coverage of part-time employees were needed. It also notes the observations of ZENROREN indicating that private enterprises with five or more regular employees in some primary industries and businesses are not required to insure their workers with the Employees’ Pension Insurance scheme. The ZENROREN further indicates that the number of part-time employees is increasing, as a means for employers to evade paying social insurance contributions. In its reply, the Government indicates that by the end of September 2019, the extension of coverage of part-time employees under the Employees’ Pension Insurance scheme will be examined in light of the status of implementation of the latest legislative amendments, the actual employment situation of the workers concerned, and the impact on enterprises. In view of the above, the Committee requests the Government to provide information on the outcome of this examination and on any measure taken or envisaged to further extend the coverage of part-time employees.
Article 28. Replacement rate of old-age benefit. The Committee requests the Government to provide statistical data on replacement rate of old-age benefit in accordance with Titles I–V of the report form for the Convention.
Article 65(10). Adjustment of old-age benefit. The Committee notes ZENROREN’s observations concerning the revision of adjustment rules of the pensions which includes: (i) a thorough implementation of the macroeconomics indexation mechanism, i.e. “unrealized negative adjustments to pensions stemming from the deflation period will be carried over and added up to negative adjustment against future increases in payment for inflation”, with effect from April 2018; (ii) a thorough wage indexation against consumer price indexation, i.e. pensions will be reduced, even if the rate of wage growth is inferior to the CPI, with effect from April 2021. According to ZENROREN, the revision of the adjustment rule of pensions will accelerate the reduction of public pension benefits. In its reply, the Government indicates that the revision of the pensions adjustment rules has strengthened the sustainability of the pension system and secured benefits levels for future generations of pensioners. The Committee recalls that in accordance with Article 65(10) of the Convention, the rates of current periodical payments in respect of old age shall be reviewed following substantial changes in the general level of earnings where these result from substantial changes in the cost of living. The Committee therefore requests the Government to provide statistical data on adjustment of old-age benefit in accordance with Title VI of the report form for the Convention.
Part XIII (Common provisions). Article 71. (a) Financing of unemployment benefit. According to ZENROREN and JTUC–RENGO, the National subsidy’s share in the employment insurance scheme continually decreased from 25 per cent to 13.75 per cent during the first revision and to 10 per cent during the second revision in 2017. In addition, the JTUC-RENGO indicates that the Employment Insurance Act, revised in 2017, has temporarily reduced employer and employee premium rates from 0.5 per cent to 0.3 per cent respectively until 31 March 2020. ZENROREN further states that, as a result of these changes, the amount of unemployment benefits has decreased by 25 per cent. Recalling that Article 71 of the Convention requires to ensure that the necessary actuarial studies and calculations concerning financial equilibrium are made periodically and, in any event, prior to any change in benefits, the rate of insurance contributions, or the taxes allocated to covering the contingencies in question, the Committee requests the Government to indicate whether such actuarial studies and calculations regarding unemployment insurance schemes are made periodically, with a view to ensuring the sustainability of the latter.
(b) Financing of old-age benefits. ZENROREN indicates that the Government’s policy is steadily reducing pensions in the long-term, without any real consideration of the impact and consultations with the persons concerned. It further indicates that the number of people whose benefits will be low will increase in the future. The Committee notes the Government’s reply regarding the measures taken to secure benefits levels for future generations. The Government also indicates that, in accordance with the latest financial audit in 2014, pensions will exceed a replacement rate of 50 per cent in the future. In addition, it states that a review of the pension system will be undertaken, should a financial audit indicate that the replacement rate of old-age benefits will fall below 50 per cent. Recalling that, in line with Article 71(3) of the Convention, the Government shall accept general responsibility for the due provision of the benefits, the Committee requests the Government to provide information on the outcome of the next financial audit.
Article 26 of Convention No. 121. Prevention of industrial accidents and occupational diseases. The JTUC–RENGO indicates an increased number of fatalities and injuries requiring work absences of four or more days. It further indicates that more effective measures aimed at preventing work-related injuries and fatalities are needed. The Committee requests the Government to provide information on measures taken or envisaged to prevent industrial accidents and occupational diseases, in the application of Article 26 of Convention No. 121.
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