The Health, Labor and Welfare Ministry has reported that an estimated 2 million workers are not covered by the employees' pension program even though they are eligible. Since the pension provides an important — and sometimes sole — source of income after retirement, the government should explore every means to ensure that all eligible workers take part in the program.
All residents of Japan are supposed to participate in the national pension program known as kokumin nenkin — a scheme essentially intended for self-employed people, who face no mandatory retirement age. People who have paid flat-rate premiums into the program for 40 years can get a monthly pension of about ¥65,000. Since that isn't a sufficient amount for retired salaried workers, who in principle no longer can earn a livelihood, company employees are supposed to be covered by the employees' pension program known as kosei nenkin, which provides additional retirement benefits.
In this program, employers must contribute half the premium, which is currently set at 17.828 percent of the worker's monthly pay. A worker with an average salary can get a monthly pension of roughly ¥157,000. The disparity is so wide that employees not covered by the program over an extended period will face great disadvantages after retirement.