Act on the Collection, etc. of Insurance Premiums of Labor Insurance

Business operators must submit each insurance year a written declaration stating the amount of the following labor insurance premiums and other matters specified by Order of the Ministry of Health, Labour and Welfare within 40 days from June 1 of the following insurance year (in the case of extinction of the insurance relation in the midst of an insurance year, within 50 days from the day on which the insurance relation becomes extinct (in the case of Class I special enrollment insurance premiums pertaining to the businesses for which the approval set forth in Article 34, paragraph (1) of the Industrial Accident Insurance Act is revoked in the midst of an insurance year and Class III special enrollment insurance premiums pertaining to the businesses for which the approval set forth in Article 36, paragraph (1) of the Industrial Accident Insurance Act is revoked in the midst of an insurance year, the day on which the approval is revoked, respectively; the same applies in paragraph (3))).

for businesses prescribed in Article 15, paragraph (1), item (i), the general insurance premiums calculated by multiplying the total amount of wages pertaining to all workers employed during the insurance year (in the case of establishment or extinction of the insurance relation in the midst of an insurance year, all workers employed during the period the insurance relation existed during the insurance year), by the general insurance premium rate in respect of the business;

for businesses prescribed in Article 15, paragraph (1), item (ii), the following labor insurance premiums:

for businesses prescribed in Article 15, paragraph (1), item (ii), sub-item (a), the general insurance premiums calculated pursuant to the rule in the preceding item in respect of the total amount of wages pertaining to all workers employed for the business, and Class I special enrollment insurance premiums calculated by multiplying the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 13 for the insurance year, by the Class I special enrollment insurance premium rate for the business;

for businesses prescribed by Article 15, paragraph (1), item (ii), sub-item (b), the general insurance premiums calculated pursuant to the rule in the preceding item in respect of the total amount of wages pertaining to all workers employed for the business, and Class III special enrollment insurance premiums calculated by multiplying the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 14-2, paragraph (1) for the insurance year, by the Class III special enrollment insurance premium rate in respect of the business;

for businesses prescribed in Article 15, paragraph (1), item (ii), sub-item (c), the general insurance premiums calculated pursuant to the rule in the preceding item in respect of the total amount of wages pertaining to all workers employed for the business, and Class I special enrollment insurance premiums calculated pursuant to the rule in sub-item (a) in respect of the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 13 for the insurance year and Class III special enrollment insurance premiums calculated pursuant to the rule in sub-item (b) in respect of the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 14-2, paragraph (1) for the insurance year;

for businesses prescribed in Article 15, paragraph (1), item (iii), Class II special enrollment insurance premiums calculated by multiplying the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 14, paragraph (1) for the insurance year, by the Class II special enrollment insurance rate for the business.

For businesses with a definite term, notwithstanding the provisions of the preceding paragraph, the business operator must submit a written declaration stating the amount of the following labor insurance premiums and other matters specified by Order of the Ministry of Health, Labour and Welfare within 50 days from the day on which the insurance relation becomes extinct (in the case of Class I special enrollment insurance premiums pertaining to a business for which the approval prescribed in Article 34, paragraph (1) of the Industrial Accident Insurance Act is revoked prior to the day on which the insurance relation becomes extinct, the day on which the approval is revoked; the same applies in the following paragraph):

for businesses prescribed in Article 15, paragraph (1), item (i), the general insurance premiums calculated by multiplying the total amount of wages pertaining to all workers employed during the whole period pertaining to the insurance relation, by the general insurance premium rate for the business;

for businesses prescribed in Article 15, paragraph (1), item (ii), sub-item (a), the general insurance premiums calculated pursuant to the rule in the preceding item in respect of the total amount of wages pertaining to all workers employed for the business, and Class I special enrollment insurance premiums calculated by multiplying the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 13 for the whole period pertaining to the approval prescribed in Article 34, paragraph (1) of the Industrial Accident Insurance Act, by the Class I special enrollment insurance premium rate for the business;

for businesses prescribed in Article 15, paragraph (1), item (iii), Class II special enrollment insurance premiums calculated by multiplying the total of the amounts specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 14, paragraph (1) for the whole period pertaining to the insurance relation, by the Class II special enrollment insurance premium rate for the business.

If the amount of the labor insurance premiums paid is in short of the labor insurance premiums prescribed in the preceding two paragraphs, the business operator must pay the shortfall, or, if no labor insurance premiums have been paid, pay the labor insurance premiums prescribed in the preceding two paragraphs, with the written declaration prescribed in the preceding two paragraphs, within 40 days from June 1 of the following insurance year in the case of businesses other than the businesses with a definite term (in the case of extinction of the insurance relation in the midst of an insurance year, within 50 days from the day the insurance relation becomes extinct), or within 50 days from the day on which the insurance relation becomes extinct in the case of businesses with a definite term.

If the business operator fails to submit the written declaration set forth in paragraph (1) or (2), or the government finds any error in the entries in the written declaration, the government is to decide the amount of the labor insurance premiums and give notice thereof to the business operator.

The business operator that has received the notice pursuant to the provision of the preceding paragraph, if the amount of the labor insurance premiums paid is in short of the labor insurance premiums decided by the government pursuant to the provisions of the same paragraph, must pay the shortfall, or if no labor insurance premiums have been paid, pay the labor insurance premiums decided by the government pursuant to the provisions of the preceding paragraph, within 15 days from the day on which the notice is received; provided, however, that the provisions of this paragraph do not apply if the requirements specified by Order of the Ministry of Health, Labour and Welfare are met.

If the amount of the labor insurance premiums paid by the business operator exceeds the amount of the labor insurance premiums set forth in paragraph (1) or (2) (if the amount of the labor insurance premiums is decided by the government pursuant to the provision of paragraph (4), the amount decided; hereinafter referred to as the "amount of final insurance premiums"), the government, pursuant to the provisions of Order of the Ministry of Health, Labour and Welfare, is to appropriate the exceeding amount to the labor insurance premiums for the following insurance year, the labor insurance premiums in arrears, or to any other amount to be collected pursuant to the provisions of this Act, or refund that amount.

If a business with a definite term in respect of which the insurance relation pertaining to industrial accident insurance has been established and which is specified by Order of the Ministry of Health, Labour and Welfare falls under any of the following items, notwithstanding the provisions of Article 11, paragraph (1), the government may determine the amount obtained by increasing or decreasing the amount of final insurance premiums pertaining to the general insurance premiums for the business, by the amount obtained by multiplying the amount reducing from the amount of final insurance premiums (in the case the amount pertains to the general insurance premiums for the businesses set forth in Article 12, paragraph (1), item (i), the amount of the portion corresponding to the industrial accident insurance rate for the business) the amount of the portion corresponding to the non-industrial injury rate, by the rate specified by Order of the Ministry of Health, Labour and Welfare within the scope of forty one-hundredth (40/100), to be the amount of the general insurance premiums for the business:

when the ratio between the payment of insurance proceeds concerning industrial injury provided for in the Industrial Accident Insurance Act prior to the day on which three months have elapsed from the day the business is terminated (excluding the lump sum compensation for surviving family paid in case of Article 16-6, paragraph (1), item (ii) of the Industrial Accident Insurance Act and the payment of insurance proceeds pertaining to persons afflicted with a specific disease), adding the amount of the benefits specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 12, paragraph (3) on one hand, and the amount of final insurance premiums pertaining to the general insurance premiums (in the case of the businesses set forth in paragraph (1), item (i) of the same Article, the amount of the portion corresponding to the industrial accident insurance rate; the same applies in the following item) after deducting the amount of the portion corresponding to the non-industrial injury rate, adding the amount of final insurance premiums pertaining to Class I special enrollment insurance premiums after deducting the amount of the portion corresponding to the special enrollment non-industrial injury rate, multiplied by the Class I adjustment rate on the other hand, exceeds eighty-five one-hundredth (85/100), or is seventy-five one-hundredth (75/100) or less, and the ratio does not change on and after that date, or the ratio is found not to fluctuate beyond the scope specified by Order of the Ministry of Health, Labour and Welfare; or

excluding the cases falling under the preceding item, when the ratio between the amount of payment of insurance proceeds concerning employment injury provided for in the Industrial Accident Insurance Act prior to the day on which 9 months have elapsed from the day the business is terminated (excluding the lump sum compensation for surviving family paid in the case of Article 16-6, paragraph (1), item (ii) of the Industrial Accident Insurance Act and the payment of insurance proceeds pertaining to persons afflicted with a specific disease), adding the amount of the benefits specified by Order of the Ministry of Health, Labour and Welfare set forth in Article 12, paragraph (3) on one hand, and the amount of final insurance premiums pertaining to the general insurance premiums after deducting the amount of the portion corresponding to the non-industrial injury rate, adding the amount of final insurance premiums concerning Class I special enrollment insurance premiums after deducting the amount of the portion corresponding to the special enrollment non-industrial injury rate, multiplied by the Class II adjustment rate (meaning the rate specified by Order of the Ministry of Health, Labour and Welfare by taking into consideration of the costs required for the payment of insurance proceeds made as pension concerning industrial injury, the costs required for the payment of insurance proceeds pertaining to persons afflicted with a specific disease, the costs required for the payment of insurance proceeds concerning industrial injury pertaining to businesses with a definite term paid on and after the day nine months have elapsed from the day the business is terminated, and other circumstances) on the other hand, exceeds eighty-five one-hundredth (85/100), or is seventy-five one-hundredth (75/100) or less.

The provisions of the preceding paragraph apply mutatis mutandis to the amount of final insurance premiums pertaining to Class I special enrollment insurance premiums. In this case, the term "Article 11, paragraph (1)" in the provisions other than that of each item listed in the same paragraph is deemed to be replaced with "Article 13", and the term "non-industrial injury rate" with "special enrollment non-industrial injury rate".

If the government increases or decreases the amount of the labor insurance premiums pursuant to the provisions of paragraph (1) (including as applied mutatis mutandis pursuant to the preceding paragraph), the government, pursuant to the provisions of Order of the Ministry of Health, Labour and Welfare, is to collect the difference between the amount of the increased or decreased labor insurance premiums and the amount of final insurance premiums, and appropriate the collected amount to the labor insurance premiums in arrears or to any other amount to be collected pursuant to the provisions of this Act, or refund the amount.

The provisions of Article 17, paragraph (2) apply mutatis mutandis to the cases where the difference is collected pursuant to the provisions of the preceding paragraph.