Japan has a comprehensive social security system covering health, pensions, unemployment insurance, family benefits and welfare benefits.

Everyone living in Japan, regardless of nationality, is required to join either the Social Insurance System or the National Health Insurance scheme, unless they are adequately covered by private health insurance.

Employees are normally insured under the Social Insurance System, which is jointly funded by employee premiums and employer contributions. Premiums are around 8.5% of salaries. The self-employed and people not in employment are covered by the National Health Insurance system, which is funded by Government contributions and by member premiums, the amount of which is based on income and assets.

Everyone living in Japan is also required to contribute to the National Pension Plan. The basic premiums in 2005 were JPY13,580 per month, with additional voluntary contributions allowed. In additional, full-time employees are required to make contributions, matched by their employer, to the Employees' Pension Insurance system.

Employees and their employers must also contribute to the Employment Insurance Scheme, which covers unemployment benefits. Employers also make contributions to the Workers' Compensation Insurance scheme, covering payments for work-related accidents.

Japan has social security agreements with the UK, USA, Germany, Korea, Canada and France, which prevent double payments and mean that social security contributions made while living in Japan can count towards pensions entitlement in these countries.