As a freelancer in Japan, you're required to enroll in both the National Health Insurance (NHI) and the National Pension systems. Here's a detailed overview of the associated costs:
- National Health Insurance (NHI)
Premium Calculation: NHI premiums are determined based on your previous year's income and vary by municipality. Each city or ward sets its own rates, so the exact amount you'll pay depends on your location and earnings.
Coverage: NHI covers a significant portion of medical expenses, typically requiring you to pay 30% of the total cost for treatments at clinics and hospitals.
- National Pension
Fixed Monthly Contribution: For the fiscal year 2024, the monthly contribution is ¥16,980. This amount is standardized across Japan and is subject to annual revisions.
Payment Methods: Contributions can be paid at banks, post offices, or convenience stores using payment invoices sent by the Japan Pension Service. Options for advance payment, automatic bank remittance, or credit card payment are available and may offer discounts.
Additional Considerations
Income Declaration: Ensure accurate reporting of your income to the municipal office, as this directly affects your NHI premiums.
Discounts and Exemptions: Depending on your income level and circumstances, you may be eligible for premium reductions or exemptions. Consult your local municipal office for specific details.
Enrollment: Register for both NHI and the National Pension at your local municipal office upon commencing freelance work.
By staying informed and proactive about these obligations, you can effectively manage your healthcare and retirement responsibilities as a freelancer in Japan.