The Reality of Social Insurance | After the Mandatory Enrollment Requirement for 100% in April H29

Hello, everyone.

This is Enta.

 

Are you enrolled in social insurance? lol

This policy, which took effect in April of Heisei 29 with 100% enrollment in social insurance, has been in place—but what’s the situation like around you??

 

"Guidelines for Subcontractors on Social Insurance Enrollment"

"No later than fiscal year Heisei 29,

For workers for whom we cannot confirm that they have appropriate insurance,

"The general contractor should adopt the policy of not permitting access to the site unless there are special circumstances."

It says...

 

But in reality, it feels like we’ve been left in the dark.

The reason is that,It seems there are cases where people are just saying, “Oh well, we can’t help it this time because of the labor shortage,” even at the individual workplace level, lol.

Even if you’re desperately paying your social insurance premiums and staying enrolled,

Ultimately, the reason contractors who aren't enrolled in social insurance are allowed on site isLabor Shortage

What are you guys at the Ministry of Land, Infrastructure, Transport and Tourism going to do?? lol

Since the volume of construction work has decreased, companies are naturally competing on price in their bids, and construction unit prices have not risen,

...It's gotten to the point where social insurance premiums are the only thing that's reliably deducted, which is pretty scary, isn't it?

The subcontractors are struggling to keep up.

I have a feeling there are some things we should do before providing guidance to subcontractors on social insurance. What do you think?

 

In a multi-tier subcontracting structure, the hierarchy is as follows: first-tier subcontractor → second-tier subcontractor → regular employees (many).

There is no problem because only primary and secondary workers are enrolled in social insurance, but regular employees who are currently working are not enrolled.

Regular employees are covered by National Health Insurance, the National Pension System, and Unemployment Insurance, but for those who are enrolled...

 

The other day, I was talking to an employee of a general contractor, and—

Sooner or later, once a major general contractor gets called out over social insurance issues, something will happen.

That's what he was saying.

That’s probably true. But it’s not the general contractors who’ll be in trouble if they’re singled out—it’s the government, isn’t it?
(The government will probably just pass the buck to companies, lol)

While labor shortages are driving up unit prices, the lack of construction projects is causing them to fall.

As a result, fewer companies will pay social insurance premiums, right?

 

It's starting to get hard to tell what's right, lol.

 

See you later.

  1. ヒットマン says:

    That’s exactly right. Primary and secondary contractors are insured, and a handful of people oversee construction projects worth tens of thousands or even millions. The companies actually doing the work have their profits deducted from that amount and are left to cover the insurance costs for a few to a dozen or so employees—all based on a price they secured through a cutthroat competitive bidding process. So even if they tell me, “Well, that amount is already included,” it’s hard to accept that.

    • Entertainment エンタ says:

      Thank you as always.

      That's right.
      In the end, it’s kind of a vicious cycle, and the economy just isn’t picking up.
      I wonder what's inside?? lol
      Since discussing this matter is actually illegal, it’s best to have a thorough conversation about it.
      It's really tough for subcontractors...

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