Guide
Japan Pension System for Foreigners: What You Need to Know
Last updated: March 2026 · Based on official sources
Japan's pension system is mandatory for all residents aged 20-59, including foreigners. Even if you don't plan to stay long-term, you're required to enroll and pay premiums. The good news: if you leave Japan, you can claim back a portion of what you paid through the Lump-Sum Withdrawal Payment (脱退一時金).
This guide explains the two pension types, how much you'll pay, exemptions available, and exactly how to get your money back when you leave.
Enrollment is mandatory — and increasingly enforced
Non-payment of pension premiums can affect your visa renewal. From June 2027, immigration will formally check pension and health insurance compliance during visa renewals. Pay your premiums or apply for an exemption.
The Two Pension Types
Employee Pension
厚生年金 (Kousei Nenkin)
- Who: Full-time company employees
- Enrollment: Your employer handles it
- Cost: ~18.3% of salary, split 50/50 with employer (you pay ~9.15%)
- Includes: National Pension is included — you don't pay separately
- Benefit: Higher pension payouts than National Pension alone
National Pension
国民年金 (Kokumin Nenkin)
- Who: Self-employed, freelancers, students, unemployed
- Enrollment: You enroll at your ward office
- Cost: Flat rate ¥16,980/month (2026)
- Payment: You pay the full amount yourself
- Exemptions: Available for students and low-income earners
Which Pension Type Are You?
| Your situation | Pension type | Monthly cost (approx.) |
|---|---|---|
| Full-time employee (Work Visa) | Employee Pension | ~9.15% of salary (auto-deducted) |
| Student (Student Visa) | National Pension | ¥0 (if exemption approved) |
| Spouse (Spouse Visa, not working) | Category 3 dependent | ¥0 (covered by spouse's employer) |
| Working Holiday | National Pension | ¥16,980 |
| Freelancer / Self-employed | National Pension | ¥16,980 |
| Specified Skilled Worker | Employee Pension | ~9.15% of salary (auto-deducted) |
Student Exemption (学生納付特例)
If you're on a student visa, you can apply for the Student Payment Special Exception (学生納付特例制度). This postpones your pension payments while you're studying — you won't be penalized for non-payment.
How to apply
- Go to your ward office (same visit as registration is fine)
- Bring your Residence Card and student ID
- Ask for the pension student exemption form (学生納付特例申請書)
- Submit the form — approval is typically straightforward for students
The exemption must be renewed annually (every April). You can backpay within 10 years if you want to increase your future pension.
Low-Income Exemption and Reduction
If your income is below certain thresholds, you may qualify for a full or partial exemption from National Pension premiums:
| Exemption level | You pay | Income threshold (single) |
|---|---|---|
| Full exemption | ¥0 | ¥670,000 or less |
| 3/4 exemption | ~¥4,245 | ¥880,000 or less |
| Half exemption | ~¥8,490 | ¥1,280,000 or less |
| 1/4 exemption | ~¥12,735 | ¥1,680,000 or less |
Apply at your ward office. Thresholds include dependents — check with your ward office for your specific situation.
Lump-Sum Withdrawal Payment (脱退一時金)
Get your pension money back when you leave Japan
If you paid into the Japanese pension system for 6 months or more and leave Japan permanently, you can claim a lump-sum refund. This is one of the most overlooked benefits for foreigners.
Eligibility
- You are not a Japanese national
- You paid pension premiums for 6 months or more
- You do not have the right to receive a pension (generally: less than 10 years of contributions)
- You no longer live in Japan (have submitted moving-out notification)
How much you get back
The amount depends on how long you contributed and the type of pension:
| Contribution period | National Pension refund (approx.) |
|---|---|
| 6-11 months | ~¥50,000 |
| 12-17 months | ~¥100,000 |
| 18-23 months | ~¥150,000 |
| 24-29 months | ~¥200,000 |
| 30-35 months | ~¥250,000 |
| 36+ months (up to 60 months) | ~¥300,000-500,000 |
Employee Pension (厚生年金) refunds are typically higher because both your and your employer's contributions are factored in. Exact amounts depend on your salary and contribution period.
How to claim
- Before leaving Japan: Submit your moving-out notification (転出届) at your ward office
- After leaving Japan: Submit the Lump-Sum Withdrawal Payment claim form to the Japan Pension Service (JPS). You can download the form from the JPS website.
- Required documents: Claim form, copy of passport (page with departure stamp), bank account details for receiving the refund (overseas account is OK), copy of pension handbook (年金手帳) or My Number notification
- Deadline: Within 2 years of leaving Japan
- Processing: Typically 3-6 months. Payment is sent to your overseas bank account.
Tax on the refund
A 20.42% income tax is withheld from the lump-sum payment. You can claim this tax back by appointing a tax representative in Japan (納税管理人) before you leave. The tax representative files a tax return on your behalf and the refund is sent to you.
Social Security Agreements (社会保障協定)
Japan has social security agreements with over 20 countries. If your country has an agreement, your pension contributions in Japan may count toward your home country's pension, and vice versa. This can be more valuable than the lump-sum withdrawal if you contributed for many years.
Countries with agreements include: USA, UK, Germany, France, South Korea, Australia, Canada, and others. Check with the Japan Pension Service for the full list and specific terms.
Important: Choose one or the other
If you claim the lump-sum withdrawal, those contribution years cannot be counted under a social security agreement. Consider your long-term situation before deciding which option is better for you.
FAQ
What happens if I don't pay my pension?
Non-payment can result in penalty surcharges and may affect your visa renewal. The pension office may also garnish assets. If you can't afford payments, always apply for an exemption rather than ignoring the bills.
Can I get a Japanese pension if I stay 10+ years?
Yes. If you contribute for 10 years or more (combined across both pension types), you qualify for the Japanese pension at age 65. Years under social security agreements can count toward this 10-year minimum.
My employer says they don't offer pension. Is that legal?
If you work more than 20 hours/week at a company with 51+ employees, your employer is legally required to enroll you in Employee Pension. Smaller companies may not be required to, in which case you need to enroll in National Pension yourself.
How do I pay National Pension premiums?
You'll receive payment slips (納付書) by mail. Pay at convenience stores, banks, or set up automatic bank transfer (口座振替). You can also pay via credit card or PayPay. Paying annually in advance gives you a small discount.
Related Guides
Health Insurance for Foreigners →
Usually enrolled alongside pension. NHI vs Employee Insurance explained.
Tax in Japan for Foreigners →
Pension premiums are fully tax-deductible. Lump-sum withdrawal has tax implications.
Visa Renewal Guide →
Pension compliance is checked during visa renewals. Non-payment can lead to shorter renewal periods.
Pension enrollment is Step 4 of settling in Japan
See all the steps you need to complete, tailored to your visa type.
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