The Japan Pension Service oversees the country’s public pension system, which provides financial support through pension benefits. By paying monthly contributions, residents in Japan can receive payments after retirement, or in cases of disability or the loss of a spouse.
Japan’s pension system is based on the principle of universal coverage (Kokumin-Kai-Nenkin), meaning that everyone living in Japan between the ages of 20 and 59 is required to enroll—regardless of nationality. This includes foreign residents, who must also join the system through the Japan Pension Service.
In this article, we guide you through the basics of Japan’s public pension system, with special attention to important points foreign residents should know. The information is provided under the supervision of certified social insurance and labor consultant, Masashi Yasumori.
Table of Contents
Profile of Writer
Masashi Yasumori
Representative of Yasumori Social Insurance Labor Consultant Office;
After 25 years at Central Japan Railway Company (JR Tokai), opened Yasumori Social Insurance Labor Consultant Office in 2023. At JR Tokai, worked on human resources strategy, Shinkansen reservation system development, and the creation of railway usage rules. Now, as a certified Labor and Social Security Attorney, provide consulting on HR matters and write as a specialist in labor and employment issues.
For more useful tips on living in Japan, check out the articles below.
Chapter 1: Basic Structure of Japan’s Pension System
Two Types of Pension
Japan’s public pension system has a two-layer structure.
The first layer is the National Pension, which everyone living in Japan must join.
The second layer is the Employees’ Pension, which is for people working at companies or in government jobs.
If you’re a company employee or a public servant, you’re automatically enrolled in both systems. This means you’ll usually receive more pension benefits than someone who only pays into the National Pension, like self-employed people or students.
| English | Kanji | Romaji |
|---|---|---|
|
National Pension |
国民年金 |
Kokumin Nenkin |
|
Employees’ Pension Insurance |
厚生年金 |
Kousei Nenkin |
Who Needs to Join and How It Works
National Pension (Kokumin Nenkin)
Everyone in Japan aged 20 to 59 must join—this includes foreigners.
If you’re not working for a company that offers Employees’ Pension, you pay a fixed monthly amount yourself.
The benefit amount is also fixed and doesn’t depend on your income.
Employees’ Pension (Kousei Nenkin)
This is for full-time company workers and public servants.
Premiums are taken directly from your salary and bonuses.
Your employer pays half of the premium, so you don’t cover the full cost alone.
The more you earn, the more you pay—and the more you’ll receive later as pension.
If you work part-time or as an hourly employee, you may still be enrolled in the Employees’ Pension if all these apply:
You work 20+ hours per week
You earn at least ¥88,000 per month
You’ve been working for over 2 months
You are not a student
Your company has 51 or more employees
Chapter2: Three types of pension participants
There are three types of insured persons (hi-hokensha / 被保険者), and each has different rules for who can join and how much they pay. In this chapter, we will explain the three types and how the system works for each one.
| Type of Insured Person | Who is Covered | Pension System | Premium Payment |
|---|---|---|---|
|
Type 1: dai-ichigō hi-hokensha |
Self-employed, students, freelancers, or unemployed |
National Pension |
Paid individually by the insured person |
|
Type 2: dai-nigō hi-hokensha |
Full-time employees, public servants, private school staff |
Employees’ Pension |
Automatically deducted from salary; shared between employee and employer |
|
Type 3: dai-sangō hi-hokensha |
Spouses of Type 2 insured persons* |
National Pension |
No premiums required |
*The person’s annual income must be under ¥1.3 million and less than half of the spouse’s income.
Chapter 3: Payment Amounts in Japan Pension Service
For National Pension
The monthly payment is ¥17,510 (for the fiscal year 2025).
Payment can be made monthly, or you can prepay for a set period (6 months, 1 year, or 2 years). If you choose prepayment, you get a discount on the premium.
You can make payments in several ways:
Via payment slip at financial institutions, post offices, or convenience stores.
By automatic bank transfer or credit card payment.
Additional Premium
For an extra ¥400 per month, you can increase the amount of the old-age basic pension you will receive after turning 65 (this is called the additional pension). If you prepay this additional premium, you will receive a discount.
If You Have Trouble Paying the Premium
Exemption from Premium Payment:
If your income (or the income of your household head or spouse) was below a certain threshold last year, or if you are unemployed, you can apply for an exemption. The exemption can cover all, three-quarters, half, or one-quarter of the premium.
If you receive public assistance or disability pensions, the premium can be fully exempted if you inform your local government.
If your premium is exempted, the amount of your old-age basic pension when you turn 65 will be reduced. However, if you later become able to pay, you can make up for the missed payments within 10 years, which will help reduce the amount of reduction in your pension.
Delay of Premium Payment:
If you are a student or under 50 years old with a low income, you can apply to delay paying the premiums.
If you do not pay during the delay period, it will affect your future pension amount, but like the exemption, you can make up for missed payments within 10 years to reduce the future pension reduction.
Exemption of Premiums During Pregnancy and Childbirth:
If you are pregnant, premiums are exempt from the month before your due date (or three months before in the case of multiple births) until two months after childbirth.
During this exemption period, you are treated as if you have paid premiums, so it will not affect the amount of pension you receive in the future.
For Employees’ Pension
For employees and public servants enrolled in the Employees’ Pension Insurance (厚生年金), the premium is calculated based on their salary or bonus. It is determined by multiplying the standard monthly salary or standard bonus amount by the insurance rate of 18.3%.
The total premium is split between the individual and the employer, so the employee only bears half of the premium.
Premiums are deducted directly from the salary or bonus.
Additionally, a spouse supported by an employee (enrolled as a Type 3 insured person under the National Pension) does not need to pay any premiums.
If You Have Trouble Paying the Premium
Exemption from Premium Payments During Maternity Leave (Pre-Birth, Post-Birth)
When you take maternity leave (both pre-birth and post-birth), premiums are waived from the start of your leave until the month before it ends. Like with the National Pension, these unpaid premiums are considered as paid, so your future pension amount won’t be affected.
If you return to work after your leave, premiums will be calculated based on your average salary for the next three months. If your salary decreases (e.g., due to part-time work), the premiums will be adjusted accordingly.
Exemption During Childcare Leave
Just like with maternity leave, premiums are waived during childcare leave, and your future pension won’t be affected.
When you return to work, the way premiums are calculated will be the same. If your salary during childcare leave is lower than before, your future pension benefits will still be based on your pre-leave salary, so taking childcare leave won’t reduce your future pension.
Chapter 4: Example of Pension Benefits
If you are only enrolled in the National Pension
Annual Amount (2025): ¥831,700 (Monthly: ¥69,308)
This assumes you start receiving benefits at age 65 and have no periods of premium exemption.
If you are also enrolled in the Employee Pension
If you’ve been enrolled for 40 years with an average monthly salary (including bonuses) of ¥700,000 (Annual salary of ¥8.4 million):
Employee Pension Only:
- Annual Amount: ¥1,841,616 (Monthly: ¥153,468)
Total Amount (National Pension + Employee Pension):
Annual Amount: ¥2,673,316 (Monthly: ¥222,776)
Note:
The amounts shown are based on the pension calculation method used since 2003.
If you have dependents—such as a spouse under 65 years old or children (up to the end of the fiscal year in which they turn 18)—you may receive an additional dependent allowance (kakyuu nenkin).
The extra amount is:
・¥239,300 for a spouse and up to two children
・¥79,800 for each additional child starting from the third child
Chapter 5: Eligibility Requirements for Receiving Pension
Basic Old-Age Pension (National Pension)
To receive the basic old-age pension, you must meet both of the following:
You have paid premiums or received exemptions for a total of 10 years or more
You are 65 years or older at the time of receiving benefits
Employees’ Old-Age Pension (Employees’ Pension Insurance)
To receive the employees’ pension, you must meet the following:
You qualify for the Basic Old-Age Pension (meet the above requirements), and
You were enrolled in the Employees’ Pension for at least one month
The starting age for receiving this pension is also 65 or older
Chapter 6: Pensions for Foreign Residents in Japan – What to Know
Risk of Returning Home Before Qualifying
Foreign residents working in Japan may need to leave the country before they meet the eligibility requirements to receive a Japanese pension (Basic or Employees’ Pension). In such cases, they may not be able to receive pension payments from Japan.
This chapter explains how to think about pension systems both in Japan and your home country.
1. Social Security Agreements (SSA)
Some foreigners working in Japan and Japanese citizens working abroad may face issues such as:
Having to pay into pension systems in both countries at the same time
Being unable to combine pension coverage periods between Japan and their home country
To avoid these problems, Japan has signed Social Security Agreements with certain countries. These agreements aim to:
Avoid double payments:
If you are temporarily sent to work in Japan (or vice versa) for 5 years or less, you will only contribute to your home country’s pension.
If your stay is over 5 years, you will contribute to the host country’s pension.Totalize pension periods:
If you meet the minimum eligibility period by combining the time you were enrolled in both countries’ pension systems, you may receive pensions from both countries, based on the periods contributed in each.
*As of April 2024, Japan has signed agreements with 23 countries. For more details, please check the official source or contact the pension office.
2. Lump-Sum Withdrawal Payment for Foreigners
Foreigners who leave Japan before becoming eligible for pension benefits may be able to claim a lump-sum withdrawal payment. You can apply for this payment if you meet all of the following conditions:
You have paid into the National Pension or Employees’ Pension for 6 months or more.
You have not met the 10-year requirement to receive Old-age Basic Pension.
You have not received any disability pension from the Japanese system.
You are no longer living in Japan and have not received any pension payments.
You apply within 2 years after leaving Japan.
This system allows you to get back a portion of the pension premiums you paid. For further information, please check below.
Japan’s pension system can seem complex, especially for foreigners. But with the right information—whether it’s about eligibility, contribution rules, or the lump-sum withdrawal payment—you can make informed decisions.
If you’re planning to work or already working in Japan, take time to understand how the Japanese pension system for foreigners works and how it affects your future.
Have a question about pensions in Japan? Drop it in the comments—we’re here to help!
