Stricter Penalties for Social Insurance Arrears from 2024: Impact on Permanent Residency#

In 2024, the Japanese government enacted significant amendments to the Immigration Control and Refugee Recognition Act (Immigration Control Act). These changes represent a fundamental shift in the nation’s residency management system. Among the various revisions, the most critical development affecting foreign residents is the stricter handling of arrears in social insurance premiums and taxes.

Previously, obtaining the status of “Permanent Resident” (Eiju-sha) was seen as securing a stable status that would not be easily revoked, provided one did not commit serious criminal offenses. However, under the new regulations, compliance with public duties—specifically the payment of taxes and social insurance—has become directly linked to the maintenance of this status. This article provides an objective and detailed explanation of the specific examples of stricter penalties for social insurance arrears applicable from the fiscal year 2024 onwards, along with the background of these legal changes.

Revocation of Permanent Resident Status#

The most impactful change in the 2024 amendment is the expansion of grounds for revoking the status of residence for Permanent Residents. The revised law explicitly states that “willful failure to pay taxes or social insurance premiums” can now result in the revocation of Permanent Resident status.

Under the previous system, while payment records for taxes, pensions, and health insurance were rigorously scrutinized during the application for Permanent Residency, there was limited legal basis to strip an individual of the status for non-payment once it had been granted. The logic was that Permanent Residency offered stability comparable to that of Japanese nationals. However, aiming to ensure fairness between foreign residents and Japanese nationals, as well as fiscal sustainability, the government has introduced stricter measures.

If the following situations are confirmed, a Permanent Resident may face revocation of their status or a downgrade to a different status, such as “Long-Term Resident” (Teiju-sha), which requires periodic renewal:

1. Non-payment or Arrears of Taxes: Continued failure to pay national taxes (such as income tax) or local taxes (such as residence tax) without a justifiable reason.
2. Non-payment or Arrears of Social Insurance: Failure to pay premiums for the National Pension (Kokumin Nenkin), Employees’ Pension (Kosei Nenkin), or National Health Insurance (Kokumin Kenko Hoken).

It is important to note that the law targets malicious cases where individuals have the financial capacity to pay but intentionally refuse to do so, or repeatedly ignore reminders. However, the fact remains that the fulfillment of public duties is now a condition for retaining Permanent Residency.

Enhanced Information Sharing and Monitoring Systems#

To ensure the effectiveness of these stricter penalties, the government is strengthening the information linkage between the Immigration Services Agency (ISA) and other administrative bodies.

In the past, the ISA primarily checked an individual’s detailed tax and social insurance payment status only when an application for an extension of period of stay or for Permanent Residency was submitted. There was no real-time monitoring system for those who already held Permanent Residency, as they did not need to apply for visa extensions.

Moving forward, systems will be established to allow smoother data sharing between the ISA, the Ministry of Health, Labour and Welfare (which oversees pensions and labor insurance), the National Tax Agency, and local municipalities. This infrastructure will enable the ISA to continuously and accurately monitor the compliance status of foreign residents.

If the system detects long-term arrears or non-payment, the ISA can initiate investigations or request reports from the resident. Consequently, the strategy of “fixing the books” or paying lump sums only right before an application is submitted will no longer be effective. Continuous, daily compliance is now required.

Impact on Renewals for Non-Permanent Residents#

The stricter scrutiny regarding social insurance arrears is not limited to Permanent Residents. It also significantly affects those holding other statuses of residence, such as “Engineer/Specialist in Humanities/International Services” or “Specified Skilled Worker.”

While the payment status of health insurance and pensions has always been part of the examination guidelines for the “Extension of Period of Stay,” the operation of these guidelines is becoming much stricter from 2024 onwards. The following consequences are becoming more common:

• Reduction of Period of Stay: Even if an applicant meets the criteria for a 3-year or 5-year visa, the presence of minor payment delays or periods of non-payment may result in the granting of only a 1-year visa.
• Risk of Denial: In cases of malicious or continued non-payment, the application for extension may be denied, forcing the individual to leave Japan.

A common pitfall occurs when changing jobs. While employees are typically enrolled in Social Insurance (Shakai Hoken) deducted from their salary, a gap between jobs requires the individual to personally enroll in and pay for National Health Insurance and National Pension. Failing to complete these procedures and missing payments—even due to a simple oversight—is increasingly treated as a violation of public obligations, negatively impacting visa examinations.

Definitions and Scope of “Social Insurance”#

To avoid penalties, it is crucial to understand exactly what falls under the scope of “Social Insurance” in this context. It generally covers:

• Public Pension:
  • Employees’ Pension Insurance (Kosei Nenkin): For company employees.
  • National Pension (Kokumin Nenkin): For self-employed individuals, freelancers, or those between jobs.
• Public Health Insurance:
  • Employees’ Health Insurance (Kenko Hoken): For company employees.
  • National Health Insurance (Kokumin Kenko Hoken): For those not covered by employer insurance.
• Nursing Care Insurance (Kaigo Hoken): For those aged 40 and over.

Strict adherence to payment deadlines for all of the above is mandatory.

Practical Advice for Residents#

To navigate the stricter regulations from fiscal year 2024, residents should observe the following points:

1. Strict Adherence to Deadlines: Do not wait for reminder letters (tokusoku-jo). Pay by the original due date. A history of delayed payments can be a negative factor in immigration reviews.
2. Reporting Changes: If you move or change jobs, you must report these changes to the municipality and the Immigration Bureau within 14 days. Failure to report constitutes a violation of the Immigration Control Act and can be grounds for revocation of status under the new rules.
3. Dependent Management: If you have a spouse or children under “Dependent” (Kazoku Taizai) status, ensure their income does not exceed the legal limits and that they are properly enrolled in insurance if necessary. Compliance is evaluated on a household basis.

Conclusion#

In Japan’s immigration system from 2024 onwards, the payment of social insurance premiums and taxes is no longer just a financial obligation; it has become a fundamental “qualification requirement” for continuing to live in Japan. The introduction of the system to revoke Permanent Resident status signifies a major shift in policy, placing greater emphasis on the balance between rights and obligations.

For foreign nationals wishing to build their lives in Japan, understanding these changes is vital. Sincere and consistent fulfillment of public duties is the most effective way to protect one’s status of residence and ensure a stable life in Japan.