💴 What is the Japan Pension Refund?
Every foreigner working in Japan contributes to the Japanese pension system. For company employees, roughly 9.15% of your salary is deducted each month — matched by your employer. Over a 3-year work visa, that's potentially ¥500,000–¥1,000,000+ you've paid in.
But if you leave Japan without reaching the 10-year minimum to qualify for a regular pension, that money seems lost.
It isn't.
Japan has a system called the Lump-sum Withdrawal Payment (脱退一時金 / dattai ichijikin) that allows foreign nationals leaving Japan permanently to recover a portion of what they paid in.
Every year, thousands of foreigners miss this
The deadline is 2 years after leaving Japan. Miss it, and the money is gone forever — there are no extensions. Most people find out too late because nobody tells them at departure. You're reading this — you won't be one of them.
厚生年金 (Kosei Nenkin)
⚠️ 20.42% tax withheld on refund (but recoverable)
国民年金 (Kokumin Nenkin)
✅ Refund is tax-free
✅ Are You Eligible? — 7 Requirements
You must meet ALL of the following:
Social Security Agreement countries — check before you claim
If your home country has a Social Security Agreement (SSA) with Japan for pension totalization — including USA, Germany, France, Australia, Canada, Philippines, India — your Japanese and home-country pension periods may be combined. If combined total reaches 10 years, you may qualify for an actual pension. Read the decision guide below before applying.
💰 How Much Will You Get?
🏢 Employee's Pension (most work visa holders)
Formula: Average Standard Remuneration (平均標準報酬額) × Payment Rate
| Months Contributed | Payment Rate | Salary ¥300K/mo | Salary ¥500K/mo |
|---|---|---|---|
| 6–11 months | 0.5% | ~¥18,000 | ~¥30,000 |
| 12–23 months | 1.1% | ~¥39,600 | ~¥66,000 |
| 24–35 months | 1.6% | ~¥57,600 | ~¥96,000 |
| 36–47 months | 2.2% | ~¥79,200 | ~¥132,000 |
| 48–59 months | 2.7% | ~¥97,200 | ~¥162,000 |
| 60 months (max) | 5.5% | ~¥495,000 | ~¥825,000 |
2021 Reform: cap raised from 36 to 60 months
Before April 2021, the maximum calculation period was 3 years. It's now 5 years (60 months). If you contributed for more than 5 years, only 60 months count toward the refund — but all your contribution history is erased when you claim.
👤 National Pension (self-employed / students)
Formula: Monthly Premium × ½ × Calculation Factor
FY2025 premium: ¥17,510/month. Maximum refund at 60 months: approximately ¥525,300. Tax-free.
Receive your pension refund with the real exchange rate
Japan Pension Service transfers directly to overseas accounts. With Wise, you get the mid-market rate — saving ¥10,000–¥30,000 vs a regular bank transfer on large refunds.
🤔 Should You Claim? — Decision Guide
This is the question most guides skip. Claiming the lump sum permanently erases your contribution history. Before applying, work through this decision tree:
📋 How to Apply — 5 Steps
- Passport — photo page, signature page, all visa/entry stamp pages
- Basic Pension Number (基礎年金番号) — on your pension book (年金手帳) or notification letter
- Overseas bank account details (SWIFT/BIC code, account number, IBAN if applicable)
- Moving-Out Notification confirmation (転出届受理証明書) if available
💸 How to Receive the Money Overseas
The Japan Pension Service transfers your refund directly to your overseas bank account. You need to provide your bank's SWIFT/BIC code, account number, and IBAN (for European accounts).
The hidden cost most people don't know about: Standard international transfers from Japan charge ¥3,000–¥5,000 in flat fees plus an unfavorable exchange rate. On a ¥660,000 refund, you could lose ¥15,000–¥30,000 in fees and exchange rate differences.
| Method | Fee | Exchange Rate | You receive |
|---|---|---|---|
| Japanese bank transfer | ¥3,000–5,000 | 3–4% worse than mid-market | ~¥620,000 equivalent |
| Wise | ~¥2,000–3,000 | Real mid-market rate | ~¥647,000 equivalent |
🧾 The 20.42% Tax — And How to Get It Back
If you paid Employee's Pension Insurance (厚生年金), 20.42% income tax is automatically withheld from your refund. On a ¥660,000 refund, that's ¥134,772 withheld.
The good news: you can claim most of it back by filing a tax return in Japan through a tax representative.
- Appoint a tax representative (税務代理人) in Japan before departure
- Receive the pension payment notification (脱退一時金支給決定通知書) — usually 3–6 months after applying
- Your representative files a tax return (確定申告) at the tax office with jurisdiction over your former Japanese address
- Tax refund is issued — typically to your representative's bank account, then forwarded to you
National Pension refund is tax-free
If you paid National Pension (国民年金) rather than Employee's Pension, no tax is withheld and no tax representative is needed. Simpler process, fewer steps.