Ellie and Maria, both excited to teach English in Japan, joined ECC and NOVA, respectively. Little did they know how their different employment statuses would impact their lives.
Ellie’s contract included enrolment in Shakai Hoken (Employee Health Insurance). Maria, hired as an independent contractor, had to arrange her own National Health Insurance.
Two years later, both women discovered they were pregnant.
Ellie learned she was eligible for maternity allowance—about two-thirds of her salary for up to 42 days before and 56 days after birth. She could decide when to start her leave, and if severe morning sickness required extended time off, she’d be covered after a three-day waiting period. During her leave, she wouldn’t have to pay any social insurance premiums.
Maria’s excitement quickly turned to anxiety. Her status as an independent contractor meant no maternity leave or pay. She’d have to work as long as possible and return soon after birth to maintain her income.
Both women received a 500,000-yen Childbirth Lump-sum Allowance. However, they realized this would barely cover the costs of delivery and hospital stay, as health insurance doesn’t cover maternity care.
As their pregnancies progressed, the differences became more pronounced. Ellie took time off when needed, knowing her income was mostly secure. Maria worked through discomfort, fearing lost wages.
The final blow came when Maria developed complications requiring bed rest. While Ellie’s insurance covered her time off after a three-day waiting period, Maria faced weeks without income on top of mounting medical bills. She also had to continue paying her National Health Insurance premiums, adding to her financial stress.
Lying in her hospital bed, Maria couldn’t help but wonder: Was that initial higher take-home pay worth it? She’d trusted her employer, never questioning her status as an independent contractor. Now, she realized the true cost of that oversight.
Remember Maria’s story. Come October, if you’re working 20+ hours a week at a company with 51 or more employees in Japan, you’re likely eligible for Shakai Hoken. Don’t let mislabeling rob you of essential benefits. Your health, your family, and your future are worth more than a slightly bigger paycheck now. Know your rights, and don’t be afraid to speak up. Your peace of mind is worth fighting for.