Search

KentaikyoKentaikyo is a Construction Industry Retirement Allowance Mutual Aid System

事業主の皆様へ建退共では、帰国される前に日本国内の金融機関で退職金の受取りをお願いしております。労働者の退職日が判明いたしましたら、お早めにお手続きをお願い申し上げます。

Attention all employers

Kentaikyo requires workers to collect retirement allowances from financial institutions in Japan before they return to their home countries.

All employers are kindly requested to complete all procedures as soon as possible once the retirement dates of workers are fixed.

Outline of the Kentaikyo System

Inquiries by telephone can only be accepted in the Japanese language.

List of Organization Contact Numbers

Organization 20F Nissei Ikebukuro Bldg., 1-24-1 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-8055(Monday to Friday 09:00 to 17:15)

Planning and Coordination Section All aspects of the system: 03-6731-2831~2

03-6731-2895Operations Section Contract Services: 03-6731-2849 Retirement Allowance Services: 03-6731-2846~7

Renewal Services: 03-6731-2850 Transfer of Accrued Benefits Services: 03-6731-2851Electronic Application Section Electronic Application Services: 03-6791-2832Project Promotion Section Website/PR Services: 03-6731-2866-7Execution Survey Section Screening Services: 03-6731-2843Accounting Section Mutual Aid Certification Stamp Services: 03-6731-2871~2 03-6731-2874

The Organization for Workers’ Retirement Allowance Mutual Aid (Independent Administrative Institution)

The Construction Industry Retirement Allowance Mutual Aid Organization Headquarters

31.2.40,000

Kentaikyo

Description of the Kentaikyo SystemThis system is a retirement allowance system created by the government in alignment with the Smaller Enterprise Retirement Allowance Mutual Aid Law for construction site workers.It is a retirement allowance system that covers the entire construction industry. Employers affix Mutual Aid Certification Stamps that represent installments to the Mutual Aid Notebooks in the possession of construction site workers in alignment with the number of days they have worked. Workers will be paid retirement allowances by the Kentaikyo system when they stop working for the construction industry.

Five Main Features of the Kentaikyo System

1Completely safe and easy system established by the governmentRetirement allowances are calculated and paid without fail in accordance with standards established by the government. The procedures for subscribing are also extremely simple.

2Retirement allowances are accumulated and calculated across companiesEven if workers switch from one company to another, the retirement allowance will be accumulated throughout all periods and calculated in total.

3The government provides financial assistance for a certain amount of the installmentsThe government provides financial assistance for a certain amount of the installments (50-days’ worth of Mutual Aid Certification Stamps on the first notebooks) for workers (mutual aid subscribers) joining the system for the first time.

4Installments are treated as deductible expensesThe entire sums of the installments are treated as tax-deductible expenses for companies and necessary expenses for individuals from the perspective of tax laws.(Article 135, Section 1 of the Corporation Tax Law Enforcement Ordinance, and Article 64, Clause 2 of the Cabinet Order of Income Tax Law.)Note: Note that size-based taxation applies to the corporation enterprise tax for companies with a capital or expenditure

exceeding \100-million.)

5Additional points added during business affairs screeningCompanies subscribing to the system will received additional evaluation points during the screening process for submitting tenders for public works.

Freelance master craftsmen can also subscribe through voluntary association

If freelance master craftsmen (including the craftsmen and apprentices learning skills under them) come together to form voluntary associations and the articles of agreement and skills of these associations are certified by the Organization, the associations will be deemed employers and all workers employed by each individual freelance master craftsman or other member of the voluntary association registered as the employer will be eligible for subscribing to the system.

For Employers For Construction Site Workers

18Months

23Months

12Months

Approximately

¥70,000Approximately

¥40,000Approximately

¥20,000

Approximately

¥410,000

Approximately

¥940,000

Approximately

million¥1.57

Approximately

million¥2.25

Approximately

million¥3.02

Approximately

million¥4.89

Approximately

million¥6.03

Approximately

million¥3.90

(¥10,000)

(Years)

Contract Eligibility, Subscription EligibilityWhat employers are eligible

to conclude contracts?Companies involved in the construction industry are eligible to conclude contracts regardless of whether they are general constructors, specialized contractors, non-specialized service providers, main contractors or subcontractors, regardless of whether they are specialized in the construction business or engage in other services, and regardless of whether they are licensed or not.

From subscribing through to receiving the retirement allowance: Kentaikyo System Procedures

Workers eligible to subscribe

Anybody working on a construction site is eligible to subscribe to the system regardless of the job they are doing (carpenters, plasterers, scaffolders, earth-workers, electricians, plumbers, painters, machine operators, site clerks, etc.), and regardless of whether they are paid daily or monthly.However, note that workers who receive renumeration as executives, who are full-time employees in the head office or other offices, or who subscribe to the Smaller Enterprise Retirement Allowance Mutual Aid System, the Sake Brewer Retirement Allowance Mutual Aid System or the Forestry Retirement Allowance Mutual Aid System based on the Smaller Enterprise Retirement Allowance Mutual Aid Law are not eligible for subscription.

Subscription MethodFill out all pertinent details on the Mutual Aid Contract application form and Mutual Aid Notebook application form available at the Kentaikyo branches located in National General Contractors Association of Japan buildings in all prefectures.* No charge is made for subscription procedures.

After Subscribing

Mutual Aid Contract Certificate (for large companies)

Having subscribed to the system, employers will be issued with Construction Industry Retirement Allowance Mutual Aid Contract Certificates and construction site workers will be issued with Construction Industry Retirement Allowance Mutual Aid Notebooks.

Sample

Mutual Aid Contract Certificate (for small- to medium-sized companies)

Sample

Initial Mutual Aid Notebook (with financial assistance)

Sample

Second and Subsequent Mutual Aid Notebook

Sample

Claiming Retirement AllowancesRetirement allowances will be paid directly to claimants when requests for payment are submitted by workers or surviving family members in the event that the Mutual Aid Notebook contains at least twelve-months’ worth of Mutual Aid Certification Stamps (with one month calculated as 21 days) and that the worker in question no longer works for the construction industry. (Requests for payment covering periods prior to March 31st, 2016, must contain installments covering at least 24 months.)

Submitting ClaimsFill out all mandatory details on the retirement allowance claim form, and then submit it to a Kentaikyo Branch together with your Mutual Aid Notebook, your Residents Card, documents to declare to the tax office, and your national identification number (My Number) without fail.

Receiving PaymentRetirement allowances will be transferred directly to the personal savings account specified by the claimant as a basic principle.

Amount of Retirement AllowanceRetirement allowances are calculated on the number of years worked as shown in the chart on the right, and the more years worked, the higher the payment.Retirement allowances for which installments have been paid for 12 months or more and less than 24 months will result in a sum approximately 30% to 50% of the total installments paid.Retirement allowances for people who die when installments have been paid for 12 months or more and less than 24 months will be equivalent to the sum of the installments paid by the employers.

Retirement allowance claim form

Mutual Aid Notebook

Residents Card

Documents to declare to the tax office

Number of Years (Months) Installments Paid

Retirement Allowance Sum (Units: Yen)

1 Year (12 Months)(18 Months)(23 Months)

23,43648,17476,167

2 Year (24 Months) 156,240

5 Year (60 Months) 410,781

10 Year (120 Months) 945,903

15 Year (180 Months) 1,572,816

20 Year (240 Months) 2,256,366

25 Year (300 Months) 3,029,754

30 Year (360 Months) 3,902,745

35 Year (420 Months) 4,898,775

40 Year (480 Months) 6,036,723

Installments of ¥310 per day!(The entire sum of the installments is paid by the employers)

Paying InstallmentsPurchasing Mutual Aid Certification

StampsThis system covers all construction sites regardless of whether they are public works or private works. The Mutual Aid Certification Stamps are to be purchased from your nearest financial institution.

Affixing Mutual Aid Certification Stamps

Mutual Aid Certification Stamps for the number of days worked that are affixed to Mutual Aid Notebooks when the worker employed is paid (at least once per month) will be deemed as payment of installments at the moment that they are postmarked.

Financial Institutions InvolvedMutual Aid Certification Stamps are available at municipal banks, regional banks, second-association regional banks, and certain credit associations and credit unions, etc.

Small- to Medium-Sized Company Mutual Aid Certification Stamps

1-day stamps: ¥310

10-day stamps: ¥3,100

Large Company Mutual Aid Certification Stamps

1-day stamps: ¥310

10-day stamps: ¥3,100

Regional Bank

Municipal Bank

Second-AssociationRegional Bank

Credit Association

Subscriber Certification Sticker

Subscriber Certification stickers are to be posted in easily-visible locations near the entrances and exits to construction site offices and other work sites when subcontracted for work by the client. The stickers are available at Kentaikyo branches.