LifePublished Updated 4 min read

National Pension and Employees Pension in Japan

A practical guide to pension, contributions, exemption, employment changes, and departure from Japan: rules, counters, documents, timing, costs, and follow-up updates.

ARTICLE MAPReading Map

Japan’s public pension system covers residents aged 20 to 59, including foreign residents. Employees usually join Employees’ Pension through work, while students, self-employed people, and unemployed residents use National Pension. The key dates are 10 years for old-age pension eligibility and 2 years for claiming lump-sum withdrawal after you no longer have an address in Japan.

National and employees’ pension

National Pension is the basic layer. Employees’ Pension is the second layer for company workers, public servants, and some short-time workers. JPS uses category 1, category 2, and category 3 insured status for different household and employment situations.

Short-time workers at firms with 51 or more employees join Employees’ Pension and health insurance when scheduled hours are at least 20 a week, they are not students, and employment is expected to last more than 2 months. The monthly wage requirement of JPY 88,000 was abolished in October 2026. The older threshold of about 30 hours a week, roughly three-quarters of full-time hours, still applies. The October 2027 extension to firms with 36 to 50 employees is not in effect yet.

Category 1 covers self-employed people, students, unemployed residents, and freelancers, with a National Pension premium of JPY 17,920 per month (fiscal 2026). Category 2 covers employees and public servants through payroll Employees’ Pension. Category 3 covers a dependent spouse of a category 2 insured person, often when annual income stays at or below JPY 1,300,000, with no direct premium from the spouse.

If you register residence at a municipal office and are not covered by company pension, complete the National Pension enrollment there within the early municipal setup period. Ignoring the notice is not the same as JPS exemption.

Contributions

The National Pension monthly premium for fiscal 2026 is JPY 17,920. Prepayment gives a discount: about JPY 4,510 off for 1 year and about JPY 17,370 off for 2 years when paid by bank transfer (fiscal 2026 published amounts). Payment methods include bank transfer, credit card, convenience store slips, bank counter, ATM, and Pay-easy.

Convenience-store slips are easy to forget, so long-term residents usually choose bank transfer or credit card.

Employees’ Pension is withheld from salary and bonus based on standard monthly remuneration. The rate is 18.3%, split between employer and employee, so the employee side is 9.15%. On JPY 300,000 monthly salary, the employee share is roughly JPY 27,450.

Exemption and postponement

If payment is difficult, apply for exemption or postponement at the municipal office or pension office. Options include full exemption, three-quarter exemption, half exemption, one-quarter exemption, student payment special system, and payment postponement for low-income residents under 50.

Approved exemption periods count toward the 10-year eligibility period, but they reduce the eventual pension amount. Unpaid periods without approval do not count in the same way. Applications generally need renewal each year.

Lump-sum withdrawal

Foreign nationals who leave Japan may apply for lump-sum withdrawal if they paid National Pension or Employees’ Pension for at least 6 months, no longer have an address in Japan, do not meet the 10-year old-age pension eligibility period, have never had a right to a disability pension or similar benefit, and apply within 2 years of the day they no longer have an address in Japan.

National Pension lump-sum amounts are capped at 60 months. Paying more than 5 years does not increase that refund. For people likely to stay long term, reaching the 10-year eligibility period may be more valuable than claiming a refund.

The National Pension amount rises in 6-month steps and depends on the fiscal year of your last paid month. If that month falls between April 2026 and March 2027, Japan Pension Service lists these amounts:

Months paidLump-sum (fiscal 2026)
6-11JPY 53,760
12-17JPY 107,520
18-23JPY 161,280
24-29JPY 215,040
30-35JPY 268,800
36-41JPY 322,560
42-47JPY 376,320
48-53JPY 430,080
54-59JPY 483,840
60 or moreJPY 537,600 (cap)

Employees’ Pension withdrawal is calculated from standard remuneration and payment rate, so higher salary produces a higher amount.

Common mistakes

Do not leave premiums unpaid without applying for exemption. Do not miss the 2-year deadline, counted from the day you no longer have an address in Japan. Do not assume the lump-sum payment returns every yen paid; it is partial and capped at 60 months.

If your spouse’s annual income crosses JPY 1,300,000, category 3 dependent status may no longer apply. Check health insurance and pension status together before changing work hours.

Useful terms

  • Kokumin nenkin: National Pension
  • Kosei nenkin: Employees’ Pension
  • Hokenryo menjo: premium exemption
  • Gakusei nofu tokurei: student payment special system
  • Dattai ichijikin: lump-sum withdrawal payment

References