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NHI vs Voluntary Continuation: Which Is Cheaper?
When you leave a Japanese company, you have 14 days to choose your next health insurance: National Health Insurance (kokuho) or Voluntary Continuation (nin-i keizoku) of your old company plan. Compare both side-by-side based on your last salary and household.
Inputs
Roughly your last monthly gross salary before resignation. Caps at 320,000 JPY for voluntary continuation.
Used for the NHI premium estimate (NHI is based on prior calendar year income).
Side-by-side comparison
Voluntary Continuation is cheaper by ¥209,677/year for your scenario.
Saves ¥209,677 / year
NHI
Annual
¥587,917
Monthly: ¥48,993
Voluntary Continuation
Annual
¥378,240
Monthly: ¥31,520 · capped
Voluntary continuation premium uses the lower of (last standard monthly remuneration) or (320,000 JPY all-insured average for FY2026), at full 9.85% rate (employee + employer share). NHI premium is per-household, based on Shinjuku Ward FY2026 rates. Switching to your spouse's employer plan (if eligible) is usually cheapest of all and not modelled here.
Quick rule of thumb
- High earner with no dependents → Voluntary Continuation often cheaper (capped at 320,000 JPY standard monthly remuneration)
- Low/middle earner with dependents → Voluntary Continuation usually cheaper (NHI charges per-person flat fees, voluntary continuation does not)
- Big income drop expected this year → NHI starting from your second NHI year benefits from your low recent income; consider switching after year one
- Job loss for non-disqualifying reason (layoff, bankruptcy) → NHI premium reduction makes NHI much cheaper
Key differences
| Aspect | NHI (Kokuho) | Voluntary Continuation |
|---|---|---|
| Duration | No limit (until age 75) | Max 2 years |
| Premium base | Last year's income, per household | Last salary at resignation, capped at 320,000 JPY/month |
| Dependents | Per-person flat fee (~65,000/year) | Free if income criteria met |
| Deadline to enrol | 14 days at ward office | 20 days, application to insurer |
| Cancellation | When joining new insurance | Possible, hard to revert |
| Coverage | 70% (same) | 70% (same) |
FAQ
- Q. What is the 14-day deadline?
- For NHI, you must enrol within 14 days of losing your previous coverage at your ward office. For Voluntary Continuation, the deadline is 20 days from loss of coverage to apply with your kenpo association. Missing the NHI deadline is not a hard block — you can still enrol later — but premiums are calculated retroactively from the day after resignation.
- Q. Can I switch later?
- Switching from Voluntary Continuation to NHI is possible at any time but irreversible. NHI to Voluntary Continuation is NOT possible (the 20-day window from resignation is the only chance). Most people pick voluntary continuation for year 1, then switch to NHI in year 2 once their low recent income lowers NHI premium dramatically.
- Q. What if my spouse joins my employer's insurance?
- If your spouse has a job and you can join their employer-based insurance as a dependent (annual income under 1.3M JPY), this is almost always the cheapest option. No premium for you. Check eligibility with your spouse's HR.
- Q. Does this affect my pension?
- No — pension is separate. After resignation you switch from Welfare Pension (kosei nenkin) to National Pension (kokumin nenkin) regardless of your health insurance choice. Premium is a flat 17,920 JPY/month for FY2026.
Estimate based on Kyokai Kenpo Tokyo (FY2026: 9.85% premium rate, 320,000 JPY average standard monthly remuneration cap) and Shinjuku Ward NHI rates. Voluntary continuation premium is calculated as the lower of (last standard monthly remuneration) or (all-insured average), times the full 9.85% rate (you pay both employee and employer share). Long-term care 1.62% added for ages 40–64. Some kenpo kumiai (employer-specific health associations) have different rules and caps that this estimate does not capture.