Japan’s welfare crackdown has foreign residents in its sights – South China Morning Post

Report on Japanese Social Security Reforms and Alignment with Sustainable Development Goals

Introduction: Policy Initiative on Social Security Contributions

The government of Japan, under the leadership of Prime Minister Sanae Takaichi, has initiated policy reforms aimed at ensuring foreign residents fulfill their mandatory social security obligations. This directive focuses on strengthening the enforcement of health insurance and pension premium payments to address fiscal strains on the nation’s welfare system and align with key Sustainable Development Goals (SDGs).

Key Policy Directives and Objectives

The administration has outlined a clear course of action to address disparities in social security contributions.

• Timeline for Proposals: Cabinet members have been directed to formulate concrete policy proposals for stricter enforcement mechanisms by January.
• Initial Focus Group: The reforms will initially target permanent foreign residents who are delinquent on their required payments.
• Stated Government Goal: The primary objective is to achieve “orderly coexistence” by ensuring all residents, irrespective of nationality, adhere to Japan’s legal and social obligations, thereby reinforcing the sustainability of the social contract.

Rationale for Reform: Systemic Challenges and Data

The policy is a response to demographic pressures and documented shortfalls in contributions from the foreign resident population.

1. Demographic Strain: The reforms are intended to shore up a welfare system under significant pressure from Japan’s declining and ageing population.
2. Contribution Disparity: Data from the Ministry of Health and Welfare for the fiscal year ending March 2025 indicates a significant gap in payment compliance.
   • Foreign residents’ pension contribution rate: 49.7%
   • Foreign residents’ health insurance premium payment rate: 63%
   • Overall payment rate (including Japanese nationals): 93%
3. Public Perception: The government acknowledges that the disparity has led to public concerns regarding fairness and the equitable sharing of social burdens.

Analysis of Alignment with Sustainable Development Goals (SDGs)

SDG 10: Reduced Inequalities

The policy directly addresses SDG 10 by seeking to eliminate inequalities in the application of national laws. By enforcing universal compliance with social security contribution laws, the government aims to create a more equitable system where the burden of funding public welfare is shared fairly among all residents who benefit from it.

SDG 3: Good Health and Well-being

The financial sustainability of Japan’s national health insurance system is critical for achieving SDG 3. The reforms are designed to strengthen this system by ensuring adequate funding through mandatory premium collections. A robustly funded healthcare system is essential for providing universal access to quality medical services for all members of society, including both Japanese nationals and foreign residents.

SDG 16: Peace, Justice and Strong Institutions

This initiative is a clear effort to strengthen the institutional framework governing social security, a core component of SDG 16. The focus on stricter enforcement and universal adherence to the rule of law promotes a just and non-discriminatory society. The government’s goal of “orderly coexistence” reflects the SDG 16 target of building effective, accountable, and inclusive institutions at all levels.

SDG 8: Decent Work and Economic Growth

A stable and reliable social security system, encompassing both health and pension benefits, is a foundational element for sustainable economic growth and decent work as outlined in SDG 8. By ensuring the long-term viability of these systems, the government is protecting the social safety net that supports the entire workforce, thereby contributing to long-term economic stability.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article discusses the sustainability of Japan’s pension and health systems, which are fundamental social protection measures designed to prevent poverty, especially among the elderly and vulnerable populations. The strain on this “welfare state” directly connects to ensuring a safety net for all.

• SDG 3: Good Health and Well-being

  The focus on collecting health insurance premiums is directly linked to achieving universal health coverage. A sustainable health insurance system ensures that all residents have access to healthcare without suffering financial hardship, a core principle of SDG 3.

• SDG 10: Reduced Inequalities

  The article explicitly mentions that the proposed reforms aim to address “mounting public concern about inequality” and a perceived “unfairness” regarding rule violations by some foreigners. The government’s goal is to ensure that all residents, regardless of nationality, shoulder their “fair share,” which relates to reducing inequalities in social obligations and benefits.

• SDG 16: Peace, Justice and Strong Institutions

  The government’s initiative to develop “concrete policy proposals for stricter enforcement” and ensure that all residents “observe Japan’s laws and social obligations” points to strengthening institutions. The goal of “orderly coexistence” is tied to the rule of law and creating effective, accountable institutions that apply rules fairly to all.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.3: Implement nationally appropriate social protection systems and measures for all.

  The article’s discussion centers on shoring up Japan’s national pension and health insurance systems, which are key components of its social protection framework. The effort to ensure all residents contribute is a measure to maintain the viability of these systems for everyone.

• Target 3.8: Achieve universal health coverage, including financial risk protection.

  The government’s focus on enforcing the payment of health insurance premiums is a direct action to sustain the financial foundation of its universal health coverage system. Ensuring adequate contributions is essential for the system’s long-term ability to provide care to all residents.

• Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard.

  The policy proposal is framed as a response to a perceived “unfairness.” By enforcing the same contribution rules for all residents, the government aims to create a more equitable system where social obligations are shared equally, thereby reducing an inequality of outcome where some benefit without contributing their share.

• Target 16.6: Develop effective, accountable and transparent institutions at all levels.

  The Prime Minister’s directive for cabinet members to “develop concrete policy proposals for stricter enforcement” is a clear step towards developing more effective institutional mechanisms. The government is taking action to make its social security contribution system more accountable and to enforce existing laws more effectively.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for Target 1.3 and 3.8: Proportion of the population covered by social protection systems.

  The article provides specific quantitative data that can serve as baseline indicators for measuring progress. These include:

  • The contribution rate of foreign residents to pension payments: 49.7%.
  • The contribution rate of foreign residents to health insurance premiums: 63%.
  • The overall payment rate (including Japanese nationals) as a benchmark: 93%.

  Progress towards the targets could be measured by the increase in the contribution rates among foreign residents, aiming to close the gap with the overall national rate.

• Indicator for Target 10.3 and 16.6: Existence of independent national human rights institutions in compliance with the Paris Principles.

  While not a quantitative metric, the article implies an indicator related to policy implementation. The development and implementation of “concrete policy proposals for stricter enforcement” by January serves as a direct indicator of institutional action. The success of these policies in increasing compliance and reducing the perceived “unfairness” would be a measure of progress.

SDGs, Targets, and Indicators Table

Source: scmp.com