Japan’s My Number: Is your company ready?

Starting in January, Japan’s My Number obliges companies to have the highest level of security system for data and paper handling of their employees’ My Numbers.

Japan will soon introduce a resident record system similar to the social security number in the US and Korea. However, nearly 70% of the 3,386 Japan firms who responded to the March to May survey conducted by the Japan Institute for Promotion of Digital Economy and Community were unready to safeguard their employees’ new identity numbers, according to The Japan’s Times article published last month.

All documents with My Number should be stored safely. Companies that are not yet prepared for the security system for My Numbers should know that there will be legal restraints on how the identity numbers are being used, including not to be allowed to use the numbers as employee identification numbers. Unlike the systems in the US and Korea, My Number has much broader linkage beyond tax and social security systems. It contains important personal information such as taxation, medical, bank accounts and disaster relief benefits held by the governments. It aims to help Japan’s government to enhance public convenience and improve the efficiency of administrative services, including tax and social benefits, as well as simplify procedures for users of governmental services.

Passed in 2013, the My Number law requires all companies in Japan to collect and manage the numbers for their employees (both part-time and full-time), and it will become necessary to adjust companies’ management of employee data. As each My Number is classified as Sensitive Personal Information (SPI), companies are required to have the highest level of security for data and paper handling of the numbers. Those who leak the identity numbers and data will face punishment, including up to four years imprisonment or a ¥2 million fine, which is about twice the penalty for leaking other personal information.

One of TMF Group Japan’s HR and Payroll services is to help companies handle My Number data management. With our strong international management team of specialists in accounting, legal, tax, payroll and HR, we can provide companies with a comprehensive solution for My Number life cycle management to help protect your company and safeguard your employees’ My Numbers data.

Contact us below, and find out more about how TMF Group Japan can help.

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Hiromitsu  Takada
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