JAPAN Benchmark Analysis BENCHMARK ANALYSIS Benefits Commonly Available Quick Scorecard As with other countries, the roots of social security in Japan can Benefits Offered be found in charity-oriented communal activities for the poor in a Pension: Y √ pre-modern era. In the modern era, while legislations such as Life: Y X Indigent Person's Relief Regulation (1874) and Poor Relief Law Disability: N X (1932) were enacted, the modern social security system based Medical: Y √ on the state's responsibility in sharing and mitigating social risk Worker Comp: Y √ of the population did not start until after the World War II and the Japanese Constitution. Y Typical Private Benefits N Not Typical Starting with the urgent need to relieve the war-stricken people, √ Currently Provided the system of social security has gradually extended its reach. In X Currently Not Provided Japan, the term "social security" means a range of social policies that are the task of a welfare state, from income security ABC vs. Benchmarks Pension: ‘ to the public health. The major schemes include Health Life: ▼ Insurance, Disease Prevention, Long-Term Care Insurance, Disability: ‘ Public Pension, Public Assistance, Employment Insurance, and Medical: ‘ Occupational Accident Insurance. Worker Comp: ‘ Overall: ‘ The year 1961 was memorable in the history of Japanese social security. Two laws for universal health insurance and pension ▲▲ Significantly Above were enacted in 1958 and 1959, respectively, and enforced in ▲ Moderately Above 1961. They have become the two main pillars of Japanese ‘ Meets Benchmarks social security system. Together with the Public Assistance Law ▼ Moderately Below (1946) and the Employment Insurance Law (1974), they are the ▼▼ Significantly Below main institutions of social policy to mitigate the risk of sickness, accidents, unemployment and old age. The primary Occupational Supplementary Plans applied to employees of private firms in Japan generally include Pension, Medical, Life and Worker’s Compensation. Typically only large or mid-sized employers provide disability insurance. As noted earlier, ABC Japan Co. Ltd. provides the following benefits to all employees: ‰ Defined Benefit retirement / termination benefits ‰ Medical Insurance ‰ Child Care Allowance ‰ Gift Money ‰ Company Housing Plan ABC Japan provides the statutory minimum vacation days for all employees. Overview of Benchmark Analysis Benchmark data was drawn from a combination of public information and our existing client database. For reasons of confidentiality we are unable to disclose the names of the clients utilized for this analysis, other than to confirm that the total sample size for this analysis ABC Japan Co. Ltd. Page B - 9