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.
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 leaving Japan.
National and employees’ pension
National Pension is the basic layer. Employees’ Pension is the second layer for company workers, public servants, and eligible part-time workers. JPS uses category 1, category 2, and category 3 insured status for different household and employment situations.
Category 1 covers self-employed people, students, unemployed residents, and freelancers, with a National Pension premium of JPY 17,510 per month. 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 2025 is JPY 17,510. Prepayment for 1 year or 2 years can give a discount. Payment methods include bank transfer, credit card, convenience store slips, bank counter, ATM, and Pay-easy.
Annual prepayment is roughly JPY 210,120, and 2-year prepayment roughly JPY 420,240, with discounts compared with monthly payment. 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 younger low-income residents.
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, and apply within 2 years after departure.
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.
Approximate National Pension lump-sum tiers are JPY 52,530 for 6 to 11 months, JPY 105,060 for 12 to 23 months, JPY 210,120 for 36 to 47 months, and about JPY 315,180 at the 60-month 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 after departure. 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