Yes, you are still required to pay health insurance premiums in Japan, even if you quit your job and have no income. However, there are considerations and possible reductions to ease the burden:
National Health Insurance (NHI) Obligations
- Coverage Continuity:
After quitting your job, you must either:
Enroll in National Health Insurance (NHI) through your local municipal office.
Continue coverage under your previous employer's Social Insurance through COBRA-like system (optional and time-limited).
- Premium Calculation for No Income:
NHI premiums are calculated based on your previous year’s income. Even if you currently have no income, premiums will still reflect the income you reported last year.
If your income was zero or significantly low last year, the premium may be minimal.
Options for Reducing Premiums
- Apply for Premium Reduction/Exemption:
Visit your local municipal office and explain your situation (e.g., unemployment, no income).
Municipalities often provide a reduction or exemption for low-income individuals or those experiencing financial hardship.
Reduction Levels:
Full exemption: No premium payment.
Partial reductions: 30%, 50%, or 70% reductions based on income and household circumstances.
- Switch to Social Insurance (Optional):
If you recently left a company that offered Social Insurance (Shakai Hoken), you can apply to continue coverage under Kokumin Kenko Hoken for a limited time (up to two years). This may reduce costs temporarily.
Important Considerations
- Enrollment is Mandatory:
Regardless of your employment status, being enrolled in a health insurance plan is mandatory in Japan. Failing to enroll can lead to penalties or backdated premiums.
- Seek Assistance Early:
Municipal offices can guide you through the reduction/exemption application process. Bring relevant documents, such as proof of unemployment and last year’s income certificate.
- Backdated Enrollment:
If you delay enrollment, premiums may be backdated to the date your previous coverage ended, leading to a larger initial payment.
Summary
If you quit your job and have no income:
Yes, you must still pay health insurance premiums.
However, you can apply for reductions or exemptions to minimize or eliminate the cost temporarily.
Visit your local municipal office immediately after leaving your job to ensure continuity of coverage and discuss your options.
Taking proactive steps ensures that you remain compliant with Japanese laws and avoid financial surprises.