800,000 firms likely dodged pension scheme

The Yomiuri Shimbun

About 800,000 small and midsize companies are strongly suspected of evading their legal obligation to join the public pension scheme for company employees, according to the results of a joint investigation by the Health, Labor and Welfare Ministry and the National Tax Agency.

The ministry identified the companies that have likely not joined the pension scheme by examining data provided by the tax agency.

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US State Department Lauds Tozen for Pension Activism

“A Pension Agency enforcement directive continues to make it explicitly easier for employers to avoid paying pension and insurance contributions on behalf of their foreign employees who teach languages as compared with Japanese employees in similar positions. It also does not establish penalties for employers who illegally fail to enroll foreign teachers in the system. Employers may use different contracts for foreigners than for nationals, and courts have generally upheld this distinction as nondiscriminatory.

Read moreUS State Department Lauds Tozen for Pension Activism