A5.

Disability Compensation is paid if you have a disability because of a work-related accident and/or illness after the injury and/or illness themselves are stabilised. Under the rules when a condition is stabilised it is referred to as being “cured” chiyu-shita. In this case, “cured”, means that the doctor determines that it is unlikely that you will either make any further recovery or become substantially worse. If you are not “cured” and further recovery or deterioration is expected, then the Loss of Income Compensation or Injury and/or Sickness Compensation continues.

Disability Compensation is based on the assessed degree of the disability from Class 1 to 14. There are two types: a pension and a lump sum payment.

1. Disability (Compensation) Pension shogai (hosho) nenkin
   This pension is paid when the degree of disability is assessed as being in Classes from 1 to 7. There are three components to the pension. a) a basic pension, b) a special pension, and c) a special one-off allowance.
   The amount of your basic pension shogai (hosho) nenkin is calculated from your basic daily benefit (average wage) and the classification of your disability. There is a sliding scale that is used to determine the pension entitlement. The maximum is paid for Class 1: 313 days of the basic daily benefit. The lowest number of days applies to Class 7: 131 days of the basic daily benefit.The special pension tokubetsu shogai nenkin applies if you receive bonuses as a customary part of your wage. If this applies, then your calculated daily bonus-type benefit is used to determine your Special Disability Pension shogai tokubetsu nenkin. For each class of disability, the number of days used to determine the Disability Special Pension is the same as that used to determine the basic disability pension.

   The special one-off allowance shogai tokubetsu shikyukin ranges from 3,420,000 yen for Class 1 to 1,590,000 yen for Class 7.
   

2. Disability (Compensation) Lump Sum Payment shogai (hosho) ichijikin
   The lump sum payment is paid when the degree of disability is assessed as being in Classes 8 to 14.There are three components to the lump sum payment: a) a basic component, b) a special component, if it applies, and c) a special one-off allowance. The special component shogai tokubetsu ichijikin applies if you receive bonuses as a customary part of your wage.The basic component shougai (hosho) ichijikin and the special component shogai tokubetsu ichijikin are both paid on a sliding scale depending upon the disability classification. Your basic daily benefit (average wage) is used to calculate the basic component of the lump sum payment.

   Likewise, your calculated daily bonus-type benefit is used as the basis for determining the special component of the lump sum payment.

   The maximum lump sum amount is paid to Class 8: 503 days of the basic daily benefit for the basic component and the same number of days of your calculated bonus-type daily benefit for the special component if it applies. The lowest lump sum basic amount is paid to Class 14: 56 days of the basic daily benefit and the same of the calculated daily bonus-type benefit if it applies. The special one-off allowance shogai tokubetsu shikyuukin ranges from 650,000 yen for Class 8 to 80,000 yen for Class 14.

For an explanation of the basic daily benefit (average wage), see Q&A 8.

For an explanation of the calculated daily bonus-type benefit, see Q&A 9.