This is a translation of the Japanese original. The Japanese version is authoritative; figures follow Japanese tax law.
When you leave a company and enroll in National Health Insurance (NHI), the premium calculated from last year's salary can be a shock. However, people who left because of bankruptcy, dismissal, non-renewal of a fixed-term contract, or contract expiry can have last year's employment income treated as 30% of the actual amount. For someone earning 5 million yen a year, the income-based portion drops by about 70%, and the income bracket used for the high-cost medical expense benefit falls as well. This article organizes which reasons for leaving qualify, how long the reduction lasts, how to apply, and whether NHI or voluntary continuation of employer health insurance is cheaper, based on municipal guidance.
Conclusion: if you left for company reasons, your NHI premium is calculated on "employment income x 30%"
| Item | Details |
|---|---|
| Who qualifies | People under 65 on the date of leaving who are recognized under employment insurance as a specially qualified recipient (tokutei jukyu shikakusha) (bankruptcy, dismissal, etc.) or a specific-reason leaver (tokutei riyu rishokusha) (non-renewal, illness, family care, etc.) |
| What the reduction does | Your employment income for the previous year is treated as 30/100 when the premium is calculated. The income bracket for the high-cost medical expense benefit is judged on the same basis |
| Period | From the month containing the day after you left, through the end of the following fiscal year (up to two fiscal years) |
| Application | At your municipal NHI counter. Bring your employment insurance eligibility certificate (or eligibility notification), identification, and something showing your My Number |
| Cost | Free. It does not apply unless you apply for it |
Sources: Shinjuku Ward, "Reduction of National Health Insurance premiums for involuntarily unemployed persons" [Shinjuku Ward], and guidance from Kita Ward, Tokyo and Chiba City. This is a national scheme, so it is the same nationwide.
Resigning for personal reasons does not qualify. However, even cases that look like personal resignations - someone whose fixed-term contract expired without renewal, or who left because of illness, caring for a parent, or an impossible commute - can qualify as a specific-reason leaver (tokutei riyu rishokusha).
Whether you qualify is decided by the "reason-for-leaving code"
When you complete the employment insurance procedures at Hello Work, you receive an "employment insurance eligibility certificate" with a two-digit code printed in the reason for leaving field. If that code is one of the following, you qualify for the reduction.
| Category | Code | Main reason for leaving |
|---|---|---|
| Specially qualified recipient | 11, 12 | Dismissal (other than dismissal for serious misconduct), bankruptcy or closure of the workplace |
| 21, 22 | Non-renewal (not renewed after three or more years of renewals, or not renewed despite an indication that it would be) | |
| 31, 32 | Commuting made difficult by relocation of the workplace, unpaid or sharply reduced wages, being urged to resign, etc. | |
| Specific-reason leaver | 23 | Contract expired and you wanted renewal but were not renewed (under three years) |
| 33 | Resignation for personal reasons with just cause (illness or injury, caring for a family member, a spouse's job transfer, etc.) | |
| 34 | Resignation for personal reasons with just cause where no benefit restriction period applies |
People whose code is 40 (personal reasons) or 50 (disciplinary dismissal) do not qualify. If you have not yet received your eligibility certificate, complete the employment insurance procedures at Hello Work first. For the unemployment benefit procedures, see how to receive unemployment benefits.
How much you save: about 330,000 yen a year on a 5-million-yen salary
NHI premiums consist of an income-based portion (last year's income multiplied by a rate) plus a per-capita portion (a fixed amount per person). Only the employment income used for the income-based portion is reduced; the per-capita portion is unchanged (if household income is low, the separate 70%, 50% or 20% reduction of the per-capita portion may also apply).
Salary of 5 million yen (employment income 3.56 million yen), age 40, single, Tokyo's 23 wards
No reduction: income-based approx. 410,000 yen + per-capita approx. 85,000 yen = approx. 490,000 yen a year
With the reduction: income-based approx. 80,000 yen + per-capita approx. 85,000 yen = approx. 170,000 yen a year
The difference is about 330,000 yen a year. Because the reduction runs through the end of the following fiscal year, depending on when you leave the two fiscal years combined can differ by more than 500,000 yen.
Rates vary widely by municipality. You can check your own city or ward in the National Health Insurance premium ranking and the ranking of Tokyo's 62 municipalities. For how the calculation works, see calculating National Health Insurance.
The period runs "from the day after you leave through the end of the following fiscal year" - crossing a fiscal year means applying twice
The reduction runs from the month containing the day after you left through the end (31 March) of the fiscal year following the one containing that month. The NHI fiscal year runs from April to the following March, so the length of the reduction depends on the month you leave.
| Date of leaving | Period reduced | Length |
|---|---|---|
| 31 March 2026 | April 2026 to March 2027 | 12 months |
| 30 September 2026 | October 2026 to March 2028 | 18 months |
| 30 April 2026 | May 2026 to March 2028 | 23 months |
Leaving at the end of March coincides with the end of the fiscal year, so the reduction period is shortest; the later after April you leave, the longer it runs. Premiums are recalculated when the fiscal year changes, but in many municipalities you do not have to reapply for the following year's reduction - it continues automatically. When your notice arrives, check that the reduction has been reflected.
If you find a new job during the reduction period and join the employer's health insurance, you leave NHI at that point and the reduction ends. If you become unemployed again and return to NHI, you qualify again as long as you are still within the reduction period based on the original separation.
Your high-cost medical expense bracket falls too
This reduction applies not only to premiums: "employment income x 30%" is also used to judge your income bracket for the high-cost medical expense benefit[Shinjuku Ward]. Someone earning 5 million yen would normally fall in "bracket U (u)", but judged on the reduced income they move one or two brackets down, cutting the monthly cap on out-of-pocket costs for a hospital stay by tens of thousands of yen. If you fall seriously ill while unemployed, this can matter even more than the premium, so it is worth applying. For the caps in each bracket, see the high-cost medical expense benefit.
Voluntary continuation or NHI: which is cheaper
After leaving a job you have three options for health insurance: voluntary continuation of employer health insurance, NHI, or being a dependent on a family member's plan. The premium for voluntary continuation is set by your standard monthly remuneration at the time you left (subject to a cap) and has nothing to do with last year's income. If you can use the reduction, NHI often turns out cheaper. As a rough guide:
NHI (with the reduction) tends to win when
- You are single or have few dependents
- Your previous year's salary was high, so the reduction cuts the income-based portion sharply
- Your municipality's rates are below average
Voluntary continuation tends to win when
- You have many dependents (voluntary continuation premiums do not rise with the number of people)
- Your municipality's per-capita portion is high
- Your health insurance society offers supplementary benefits that cut your out-of-pocket medical costs further
Voluntary continuation must be applied for within 20 days of the day after you leave, so if you are weighing it against the NHI reduction, work out the figures before you leave. For a comparison by income level, see the three health insurance options after leaving a job; for the whole sequence of procedures, see taxes and procedures when changing or leaving a job.
What to do today
- Check the reason-for-leaving code on your employment insurance eligibility certificate. Codes 11, 12, 21, 22, 23, 31, 32, 33 and 34 qualify.
- Take the certificate, your ID and your My Number to the NHI counter at your city or ward office. Some municipalities accept applications by post.
- If you are considering voluntary continuation, compare it with the reduced NHI premium and decide within 20 days.
Frequently asked questions
I was a contract employee and left when my contract was not renewed. It is treated as a personal resignation - do I qualify?
If you wanted the contract renewed but it was not, your reason-for-leaving code will be 23 (specific-reason leaver) or 21 or 22 (specially qualified recipient), and you qualify for the reduction. Check the code on your eligibility certificate. Code 40 does not qualify, but if you disagree with what is written on your separation notice you can ask Hello Work to review the determination of the reason.
I applied late. Will the reduction be applied retroactively?
Most municipalities will apply it retroactively within the reduction period and refund any premiums you overpaid. Handling differs by municipality, however, so even if time has passed since you left, go to the counter as soon as you can.
Is my spouse's income also cut to 30%?
No. Only the employment income of the person who became unemployed is reduced. Income of other household members, and your own income other than salary (business income, real estate income and so on), is used in full.
I retired at 65. Do I qualify?
People aged 65 or over on the date of leaving do not qualify. If you left at 64 and turn 65 during the reduction period, the reduction continues to the end of that period.
References (sources)
This article is based on the following materials. The requirements are the same nationwide because this is a national scheme, but check the application procedure with your own municipality.
Note: this article is general information. The premium estimates are approximations using the rates for Tokyo's 23 wards and vary by municipality, age and household composition. Check individual amounts with the NHI counter at your city or ward office.
