Injury and sickness allowance payments continue to rise at companies around Japan as mental health problems take a heavier toll on workers.
Allowance payments surged 1.6 times from five years ago to about 610 billion yen ($3.8 billion) in fiscal 2023. The figure was double from 10 years ago.
The allowance payments come from health insurance societies for large corporations, health insurance associations for small and midsized companies, mutual aid associations for public servants, and other organizations.
The individual amount paid depends on the number of days the worker is absent from work and is based on standard monthly remuneration. The insured can receive the allowance for up to 18 months.
The increase in payments correlates to the rising number of workers suffering from mental health issues mainly related to trouble with others and severe stress.
The Japan Health Insurance Association (JHIA) conducted a survey in fiscal 2024 on allowance recipients who reported “having mental and physical difficulties.”
The largest group, accounting for 39 percent of all recipients, cited mental health problems, showing the trend of annual increases.
The figure was 36 percent among male recipients and 43 percent among women.
The second-largest group cited cancer and other “neoplasms.”
Those citing “mental and physical difficulties” received the allowances on 215 days on average, while the average figure for “neoplasms” was 201 days.
The overall average was 172 days.
Younger recipients suffered more from mental health problems in fiscal 2024, while older workers were more likely to report cancer or other diseases, according to the survey.
HIROSHIMA CASE
According to a survey conducted by JHIA’s Hiroshima prefectural branch, about 8 percent of 650,000 insured workers in the prefecture in fiscal 2021 received treatment for mental health issues at medical institutions.
About 14 percent of those disqualified from health insurance after leaving their jobs or for other reasons had mental health sickness, the survey showed.
People in their 40s through 50s made up the largest age group for both men and women, indicating that many middle-aged and older workers left their jobs after developing mental health problems.
In addition, the risk of developing mental health problems was 1.25 times higher among those who said in medical questionnaires that they couldn’t sleep to recuperate.
NEARLY 6,000 YEN A DAY
The injury and sickness allowance system covers two-thirds of a daily equivalent, or one-30th of the standard monthly remuneration, beginning on the fourth day of leave.
The JHIA’s survey in fiscal 2024 found the average amount was 5,866 yen per day.
Those who start receiving the benefits while still at work and are covered by insurance for at least one year can continue getting the allowances even after retirement.
While work-related injuries and illnesses are not covered under the allowance system, the insured can apply for payments from the worker’s accident compensation insurance if they are injured or fall sick at work.
Worker’s compensation payments stemming from mental health issues are also rising every year.
According to a health ministry survey, a record 1,055 cases were deemed eligible for compensation in fiscal 2024.
By industry, the medical, welfare and manufacturing sectors accounted for 40 percent of compensation claims.
According to the health ministry’s survey on industrial safety and health released in 2024, about 13 percent of all workplaces had employees who quit their jobs or took leaves of absence for one month or more due to mental health problems.