Provide company housing, and social insurance premiums can rise

In short: provide company housing, and the rent the company bears can count as in-kind compensation (現物給与), added to remuneration. Article 46 of the Health Insurance Act provides that the value of remuneration paid in anything other than currency is "set by the Minister of Health, Labour and Welfare according to local market prices." If the standard monthly remuneration rises, the premiums rise. How much you collect from the employee changes the conclusion.

This page is for owners and back-office staff of companies that provide, or are about to provide, company housing. Because companies often arrange housing for foreign employees, it bears directly on foreign employment. Note: the income-tax side of housing benefits is a tax accountant's field, so this article stays on the social insurance (standard remuneration) side only.

Why does housing count as "pay"?

Because remuneration is not limited to money. Article 46, paragraph 1 of the Health Insurance Act provides that where all or part of remuneration is paid in something other than currency, its value is set by the Minister of Health, Labour and Welfare according to local market prices (the employees' pension system has a parallel mechanism). A company bearing the rent and providing housing can constitute this "remuneration paid in something other than currency" — in-kind compensation.

The benefit received in kind is converted to currency, added to remuneration, and the standard monthly remuneration is set on that basis. A higher standard monthly remuneration means higher health insurance and employees' pension premiums, for both employer and employee. That is the mechanism behind "company housing can raise premiums."

How is it valued?

The amounts themselves are set by prefecture in a Ministry of Health, Labour and Welfare notification (the national in-kind compensation value table), revised each fiscal year. This article deliberately quotes no figures — always check the latest table, published by the Japan Pension Service.

On top of that, fiscal 2026 is a year in which the mechanism itself moves (per the Japan Pension Service's materials updated 19 March 2026):

Period	Unit for valuing housing
Through 30 September 2026	Per person per month, per tatami mat (housing measured in m² converted at 1 mat = 1.65 m²)
From 1 October 2026	Per person per month, per m² of residential floor area (values also revised at the same time)

The same housing can therefore be counted differently from October 2026. If you run company housing, schedule a recalculation at the switch. Note also: where head office and branches form one covered workplace, the values of the prefecture where the branch is located apply.

How much rent from the employee keeps it out of remuneration?

Think in terms of the difference against the notified value. Where the amount collected from the employee is less than the notified value, the difference is counted into remuneration as in-kind compensation (per the Japan Pension Service's published materials, viewed 14 August 2026). The same property produces different outcomes depending on whether the company bears all of the rent, half, or collects at least the notified value.

Setting the rent also touches income-tax treatment of housing benefits (a tax accountant's field, with tests different from social insurance). Decide by looking at only one side, and the other side surprises you.

Whom do you consult on setting the rent?

Issue	Whose work
In-kind compensation, standard monthly remuneration, company housing rules	A shakai hoken roumushi (this office)
Income-tax treatment (the deemed rental value)	A tax accountant
Property search, corporate lease, market rents	A licensed real estate agent (leased company housing is 四葉不動産株式会社 — a separate business from this office, engaged under a separate contract)

What can 四葉社会保険労務士事務所 do?

四葉社会保険労務士事務所, in Kohinata, Bunkyo City, handles the sorting of in-kind compensation, its reflection in the standard monthly remuneration (the annual calculation report and revision notifications), and the drafting of company housing rules (fees in the fee schedule). Consultation is free of charge. Even at the stage of considering the rent setting, we will lay out how it looks from the social insurance side. If short-hours employees are involved, see also Hire for short hours, and what happens to social insurance?.

Whom to consult

Income-tax treatment and the year-end adjustment are for a tax accountant; registration for a judicial scrivener; matters in dispute for an attorney. Property search and corporate leases go to 四葉不動産株式会社, residence-status applications to 四葉行政書士事務所 (each a separate business from this office, engaged under a separate contract). No referral fees change hands.

Frequently asked questions

Q. Does providing company housing always raise the premiums?
A. Not always. The treatment turns on the difference between what you collect from the employee and the notified value, so depending on the amount collected, nothing may be counted in. The conclusion varies with the property, the prefecture and the amount collected — judge on an individual calculation.

Q. Where do I check the amounts?
A. In the national in-kind compensation value table (a ministerial notification), published by the Japan Pension Service and set by prefecture. It is revised each fiscal year, so always check the latest year's table. In fiscal 2026, the housing unit changes from per tatami mat to per m² of floor area from 1 October.

Q. What about the income-tax side?
A. The income-tax treatment (the deemed rental value) is judged on tests separate from social insurance. Tax judgments are a tax accountant's work; this office does not handle them and points you to a tax accountant, whom you engage directly. No referral fees change hands.

Q. Do we need company housing rules?
A. Putting the collected rent, move-in/move-out rules and restoration costs into written rules makes the basis of the counted amounts clear and stabilises the judgements at every arrival and departure. This office drafts them; fees are in the fee schedule.

Sources for this article

• Health Insurance Act (健康保険法, Act No. 70 of 1922), Article 46, paragraphs 1 and 2 (value of in-kind compensation; paragraph 2 allows health insurance societies to provide otherwise) — current text confirmed on e-Gov on 14 August 2026
• Japan Pension Service, "National in-kind compensation value table (values set by the Minister of Health, Labour and Welfare)" (updated 19 March 2026, viewed 14 August 2026) — fiscal 2026 revisions, including the change of the housing valuation unit from 1 October 2026
• Values are set by prefecture and revised each fiscal year. This article quotes no figures; always check the latest table

This article is general information. Judgments that fit your particular circumstances are made by a qualified professional after a meeting. Written by Joji Uramatsu (Shakai Hoken Roumushi (Certified Social Insurance and Labor Consultant), Gyoseishoshi (Certified Administrative Procedures Legal Specialist), Registered Real Estate Transaction Specialist).