[ Nippon Keidanren ] [ Policy ]

Result of Survey on Corporate Welfare Expenditures for FY 2001

January 9, 2003

Nippon Keidanren
(Japan Business Federation)

Corporate Welfare Costs Up 2.9% in Fiscal 2001 due to Higher Statutory Welfare Costs, Including Employment Insurance contributions increase: Japan Business Federation Survey

Japan Business Federation has released the results of a survey on corporate welfare expenditures for fiscal 2001 (April 1, 2001 to March 31, 2002). The survey was aimed at finding out how much companies spent for the welfare measures to their employees, and 636 companies responded.

Following is a summary of the results:

  1. The companies surveyed paid an average of ¥95,883 in welfare costs for their employees each month in fiscal 2001, up 2.9 percent from the previous year. Statutory welfare costs (such as social insurance premiums and other contributions) rose 4.7 percent to ¥68,482, while non-statutory welfare costs (housing, medical, health care, cultural, recreational and other costs companies pay for welfare programs voluntarily) declined 1.4 percent to ¥27,401.

  2. Statutory welfare costs, non-statutory welfare costs and the total of welfare costs accounted for 12.2 percent (up 0.3 percentage points from the previous year), 4.9 percent (down 0.1 points) and 17.1 percent (up 0.2 points), respectively, of cash earnings totaling ¥562,098. The ratio of statutory welfare costs was the highest since the survey was started.

  3. Statutory costs increased due mainly to 1) raise in the contribution rate of the Employment insurance in April 2001 from 1.15 percent to 1.55 percent ( shared by employers and employees of which expenses up from 0.75 percent to 0.95 percent borne by employers, and 2) deffered collection of nursing care insurance contributions for 2000 and removal of the contribution cap since 2001, caused by the preparation of legislation related to nursing care insurance.

  4. Non-statutory welfare costs declined in almost all items (down 1.4 percent) from the previous year.

  5. Retirement allowance (lump-sum payment plus annuity) averaged ¥80,495 in terms of monthly payment, up 16.2 percent from the previous year. Especially sizeable increase in lump-sum payment by 30.3 percent due to implementation of early retirement package in many companies.

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