JAPAN Benchmark Analysis Reference: relationship between Social Security and LTD / Comprehensive WACI (1) Leave of absence due to work-related injury / illness LTD 180 days waiting period Comprehensive Workmen’s Accident Compensation Government WACI 60% of Average Wage 3 day Until being able to get back to work waiting period (2) Leave of absence due to injury / illness occurred off-site 180 days waiting period LTD LTD Until age 60 Government Health 60% of Average Wage National Pension Disability Insurance 3 day waiting 18 months period Worker’s Compensation The comprehensive workmen’s accident compensation is a popular scheme in Japan. The government WACI has 3 days of waiting period, which is however a responsibility of the employer to provide minimum 60% of daily wage. This policy provides benefits automatically when WACI claim is admitted. It also covers employer’s liability. Even with this comprehensive WACI in place, it is still recommended to include a AD&D rider with the Life insurance coverage (see the above Life section) because some claims may be rejected under WACI, even those that are work-related. Housing Plan The housing plan has historically been an important part of the employee benefits package in Japan. In many companies it is designed to support the relocation of existing or new employees who need to rent an apartment within commuting distance. There are two popular methods for providing this benefit: ABC Japan Co. Ltd. Page B - 11