The health and welfare ministry has announced that nearly 163,000 companies failed to pay premiums into the Kosei nenkin system, a pension plan for corporate workers, in fiscal 2011. Since Kosei nenkin is an important fund for retired workers, company executives should realize their social responsibility and fulfill their duty. According to the law, companies must shoulder half the premiums for the Kosei nenkin system.
The ministry's report shows that the number of companies that failed to pay the premiums in fiscal 2011 reached 162,735, an increase of 274 from the previous fiscal year. The total accounts for about 10 percent of Japan's companies.
The amount of premiums in arrears was about ¥450 billion, slightly lower than in the previous fiscal year. The trend of falling behind on payments has continued since the Lehman Brothers financial shock of 2008. Many of the companies that have failed to pay premiums are small to medium in size, and their businesses are very likely to be in bad financial shape.