Pension and Lump-Sum Withdrawal Payment Guide for Foreign Residents in Japan [To Avoid Losses Upon Repatriation]
Foreign nationals working in Japan are obligated to join the pension system, regardless of their nationality. Company employees join the Employees' Pension Insurance, while self-employed individuals and freelancers join the National Pension. While it's often thought that "there's no point if I won't get it in the future," there is a system called the Lump-sum Withdrawal Payment that allows you to recover a portion of your premiums when you leave Japan. This page explains everything from the basics of the pension system to the application process for the Lump-sum Withdrawal Payment.
Non-payment of pension premiums is one factor that can cause your residence status renewal application to be evaluated as "problematic residence status." If payment is difficult, do not neglect it. Applying for the exemption/postponement system can reduce your burden while protecting your future pension eligibility.
- Types of Pensions and Obligation to Join
- What is the Lump-sum Withdrawal Payment (Refund System upon Repatriation)?
- Conditions for Receiving the Lump-sum Withdrawal Payment
- Estimated Amount of the Lump-sum Withdrawal Payment
- Application Procedure
- Social Security Agreements (System to Prevent Dual Coverage)
- Exemption System for Inability to Pay Premiums
- Frequently Asked Questions
1. Types of Pensions and Obligation to Join
| Type of Pension | Eligible Persons | Premium (FY2025) | Application Office |
|---|---|---|---|
| Employees' Pension Insurance | Company employees, corporate executives (age 20 to under 70) | 18.3% of standard monthly remuneration (Split with company, self-payment approx. 9.15%) |
Company handles it |
| National Pension | Self-employed, freelancers, students (age 20 to under 60) | ¥17,510 per month (100% self-payment) | City/ward/town/village office |
Those who are enrolled in Employees' Pension Insurance are also Category 2 Insured Persons of the National Pension. In the case of company employees, the company handles the procedures, so you do not need to do so yourself.
2. What is the Lump-sum Withdrawal Payment (Refund System upon Repatriation)?
To receive a Japanese pension, a participation period of at least 10 years is generally required. Many foreign nationals return to their home countries before reaching 10 years, which means that the premiums they have paid would be "lost."
This is where the Lump-sum Withdrawal Payment system comes in. It allows foreign nationals who meet certain conditions to receive a portion of the premiums they have paid when they leave Japan.
3. Conditions for Receiving the Lump-sum Withdrawal Payment
All of the following conditions must be met (common to both National Pension and Employees' Pension):
- Must not have Japanese nationality.
- Must have been a pension insured person (participant) for 6 months or more.
- Must not have met the qualification period (10 years) for receiving an old-age pension.
- Must not have the right to receive a disability pension, etc.
- Must not have an address in Japan (claim after leaving the country).
- Must file the claim within 2 years from the date of losing the insured person status.
If more than 2 years pass after returning to your home country, the right to claim the Lump-sum Withdrawal Payment will expire due to statute of limitations. Please make sure to complete the procedures after returning home. The maximum payment is for 60 months (5 years).
4. Estimated Amount of the Lump-sum Withdrawal Payment
Monthly premium ¥17,510 × 1/2 × coefficient based on months of participation
Example: For 3 years (36 months) of participation
Approximately ¥315,180 (before tax) is the estimate
Annual income × years of participation × 9% ≒ estimated payment amount
Example: Annual income ¥3 million, 3 years of participation
¥3 million × 3 × 9% = Approximately ¥810,000 (before tax)
When received as a non-resident, 20.42% of the payment amount will be withheld as income tax. However, by filing a "tax refund declaration" after returning to your home country, a portion of the income tax may be refunded. A tax refund declaration is valid for 5 years from the year following your return home.
5. Application Procedure
📌 Japan Pension Service | Lump-sum Withdrawal Payment System
6. Social Security Agreements (System to Prevent Dual Coverage)
Japan has concluded Social Security Agreements with many countries, which may allow for the totalization of pension participation periods in both your home country and Japan. For those from countries with such agreements, it may be more advantageous to totalize participation periods and receive a pension in the future rather than receiving the Lump-sum Withdrawal Payment.
| Main Content of Agreement | Benefits |
|---|---|
| Prevention of dual coverage | No need to pay premiums in both Japan and your home country |
| Totalization of participation periods | Combine participation periods in Japan and your home country to qualify for pension benefits |
Main countries with which social security agreements have been concluded (as of March 2026): USA, UK, Germany, France, South Korea, China, Philippines, India, etc. Please check the official websites of the Japan Pension Service or the Ministry of Health, Labour and Welfare for details.
7. Exemption System for Inability to Pay Premiums
If you are unable to pay National Pension premiums due to financial reasons, you can use the following systems. Using these systems to avoid non-payment is better than leaving them unpaid, as it protects your future pension eligibility.
| System | Content | Application Office |
|---|---|---|
| Premium Exemption System | Full or partial exemption of premiums if income is low. The exemption period is also included in the pension eligibility period. | City/ward/town/village office |
| Premium Payment Postponement System | Postponement of premium payment for individuals under 50 years old with income below a certain standard (can pay later within 10 years). | City/ward/town/village office |
| Student Payment Special System | Postponement of premium payment for students while enrolled. | City/ward/town/village office or school |
8. Frequently Asked Questions
Official Reference Links
📌 Japan Pension Service | Lump-sum Withdrawal Payment System
📌 Japan Pension Service | Moving Overseas / Moving to Japan from Overseas
Understanding your pension in Japan?
See how Japan’s pension system may affect you, including what happens when you leave Japan.