Employee matching contribution is a scheme that allows participants to make contributions (participant contributions) on top of the contributions made by the company (company contributions) in a corporate-type DC.

Participant contribution amount can be set within a range not exceeding company contribution amount, and within the maximum contribution amount when combined with company contributions. Participant contributions are deducted from the monthly salary, and investment products are purchased with the combined amount with company contributions.

 

In addition, the full amount of participant contributions is subject to income deduction, so tax burden will be reduced.

 

Employee matching contribution is allowed only if stipulated in a corporate-type DC plan document (*).

(*) In order to stipulate employee matching contribution in a corporate-type DC plan document, it is necessary to apply for changing plan document with the Regional Bureau of Health and Welfare after the labor-management agreement is reached and obtain its approval.

 

Due to the law amendments in October 2022, corporate-type DC participants of companies where employee matching contribution is available can select either to use employee matching contribution or participate in iDeCo.