Premium rate of workers’ accident compensation insurance is set for each business category based on accident occurrence in the preceding three years. Since the rates, which are reviewed every three years, kept unchanged last time, this will be the first change in six years.
[1] Premium rates
The average premium rate will be lowered by 0.1/1000 from 4.5/1000 to 4.4/1000. Among 54 business categories, the rates will be decreased for 17 categories, while the rate for 3 categories will increase. The chart below shows changes for major business sectors.
|
Business category |
Fiscal 2018 |
Fiscal 2024 |
Changes |
|
Forestry |
60/1000 |
52/1000 |
Down |
|
Food manufacturing |
6/1000 |
5.5/1000 |
Down |
|
Timber or wood manufacturing |
14/1000 |
13/1000 |
Down |
|
Pulp or paper manufacturing |
6.5/1000 |
7/1000 |
Up |
|
Metal stock manufacturing |
5.5/1000 |
5/1000 |
Down |
|
Metal product manufacturing or processing |
10/1000 |
9/1000 |
Down |
|
Electric machinery and apparatus manufacturing |
2.5/1000 |
3/1000 |
Up |
|
Building maintenance work |
5.5/1000 |
6/1000 |
Up |
[2] Special enrollment insurance premiums
Class II special enrollment insurance premiums for self-employed business operators, such as independent building contractors (hitori oyakata) will also be reviewed. Among 25 categories, the rate for 5 categories will be decreased.
|
|
Fiscal 2018 |
Fiscal 2024 |
|
Owner-driven taxis, independent freight transportation, freight transportation by motorbikes or bicycles |
12/1000 |
11/1000 |
|
Independent building contractor |
18/1000 |
17/1000 |
|
Household pharmaceutical distribution |
7/1000 |
6/1000 |
|
Processing of metals, etc., processing of western cutlery |
15/1000 |
14/1000 |
|
Footwear processing |
6/1000 |
5/1000 |
[3] Labor expense rate relating to building subcontracts
Workers’ accident compensation insurance premiums are calculated by multiplying the total amount of wages paid to all workers engaged in a company’s operations (total wage amount) by the premium rate. In the case accurate calculation of total wage amount is difficult due to the nature of company operation, a special wage calculation method may be used.
In the special method, the total subcontract fee is multiplied by a labor expense rate. The labor expense rate for the construction of new railroads and other tracks will be lowered from 24% to 19%, and the rate for other construction will be reduced from 24% to 23%.
Companies have to use new rates when calculating estimated insurance premium for fiscal 2024. Please also confirm whether the insurance rate applied to your company has been revised when calculating an estimate of personnel budget for the next fiscal year’s operational plan.
