- September 1, 2026
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Changing jobs in Japan sets off several time-sensitive tasks all at once—collecting documents before you leave, switching your residence tax, avoiding a gap in your social insurance, and transferring your company DC. If you’re a foreign employee changing jobs in Japan for the first time, it’s easy to feel unsure about where to even start.
In this guide, certified financial planner Masamichi Takayanagi walks you through it all—from the documents to collect before you resign, to handing over your residence tax, the year-end adjustment and tax return, gaps in your social insurance, transferring your company DC, tax on retirement pay, your furusato nozei limit, and the residency notification you need to file.
About the Supervisor & Writer
Masamichi Takayanagi
Financial Planner & columnist;
An independent financial planner with extensive experience as a financial columnist, specializing in a wide range of topics including asset management, life insurance, inheritance, loan products, and credit cards. Over 1,000 articles and projects have been contributed to the field.
1st grade Certified Skilled Professional of Financial Planning, Certified Financial Planner®.
Table of Contents
Chapter 1: What to Collect and Check Before You Leave
Your first priority is your withholding slip (gensen choshu hyo) from your old job. Your employer has to issue it within one month of your last day. Usually it’s mailed to your home once your final pay is worked out.
Here are the four documents to get from your previous employer:
- Withholding slip (gensen choshu hyo) — for your year-end adjustment and tax return
- Employment insurance certificate — to enroll at your new workplace
- Proof of your Basic Pension Number — a pension book or the number notification
- Certificate of health insurance disqualification — only if you’ll have a coverage gap
That last one matters if there’s a gap between jobs. It’s what the counter asks for when you switch to National Health Insurance, so request it before you leave—it keeps things moving.
You may also hear about the separation notice. It’s used to claim unemployment benefits, so you don’t strictly need it if your next job is already lined up. If nothing’s confirmed yet, though, ask for one just in case.
And if your withholding slip still hasn’t shown up after a month? Contact your old employer’s HR first. If it still doesn’t come, you can file a “notification of non-issuance” with the tax office.
| Document (English) | Kanji | Romaji |
|---|---|---|
|
Withholding slip |
源泉徴収票 |
Gensen chōshū hyō |
|
Employment insurance certificate |
雇用保険被保険者証 |
Koyō hoken hihokensha shō |
|
Basic Pension Number notification / pension book |
基礎年金番号通知書／年金手帳 |
Kiso nenkin bangō tsūchisho / Nenkin techō |
|
Certificate of health insurance disqualification |
健康保険資格喪失証明書 |
Kenkō hoken shikaku sōshitsu shōmeisho |
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Chapter 2: The Tricky Part for Job Changers: Handing Over Your Residence Tax
Residence tax trips up a lot of people, because how it’s handled depends on the month you leave. Once your last day is set, check with HR.
Here’s the background. Residence tax is based on last year’s income. It’s split into 12 monthly payments, deducted from your pay from June through May of the following year. When you quit, those salary deductions stop—so the leftover balance has to be paid another way. And exactly how depends on when you leave:
- Leaving June 1 – December 31: You switch to paying it yourself (futsu choshu), using slips your municipality mails you.
- Leaving January 1 – April 30: The whole balance through May is taken in one lump sum from your final paycheck or retirement pay.
- Leaving May 1 – May 31: Only May is left, so it comes out of your last paycheck as normal.
That lump sum can really shrink your take-home pay. So if you’re leaving early in the year, set aside some cash ahead of time. And if the balance is too big to fit into your final paycheck, the rest may roll over for you to pay yourself.
The good news: you can often keep the deductions going at your new job (tokubetsu choshu). Either your old and new employers arrange a handover, or you pay it yourself for a bit and then have your new employer switch it back. Ask your municipality or employer which applies to you.
Want the full picture of how residence tax works? Our residence tax guide breaks it down.
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Chapter 3: Handling Your Old Job's Income at Year-End or on Your Tax Return
If you change jobs within the same calendar year, the basic flow is to give your withholding slip from your old job to your new employer, so they can combine both and do your year-end adjustment. The year-end adjustment generally applies to “people who started a job partway through the year and are still employed at year-end,” so whichever employer you’re with at year-end settles your income tax for the whole year in one go.
If you left partway through the year and didn’t start a new job within that year, you usually won’t get a year-end adjustment. If too much income tax was withheld, you may be able to get it back by filing a refund claim the following year. Whether a tax return is actually required depends on your other income and similar factors.
The tax taken from each paycheck is only a rough estimate paid in advance. When you leave partway through the year, too much is often withheld—which is exactly why filing can get you money back.
Whether you’re required to file is a separate question, and it depends on your situation. Here’s one common case: say you’re a salaried employee, paid by a single employer, who has already had a year-end adjustment. If your income from sources other than salary and retirement pay comes to more than ¥200,000, you generally do need to file. (If you’re paid by two or more employers, a different test applies.)
For the detailed steps, our year-end adjustment guide and income tax guide are both worth a look.
Chapter 4: Don't Leave a Gap in Your Health Insurance or Pension
If there’s even a single day’s gap between your last day and your start date at the new job, you’ll need to switch your public insurance. Everyone living in Japan is required to be covered by some form of public health insurance, so you can’t have any uninsured period.
There are three options for the gap, each with its own deadline:
- Join National Health Insurance: apply at your municipal office or online, generally within 14 days of the day after you leave.
- Voluntary continuation: apply within 20 days of the day after you leave, and stay on your old job’s health insurance for up to two years.
- Join a family member’s coverage as a dependent: if you qualify, arrange it through that family member’s employer.
With voluntary continuation, there’s no extra premium for family members recognized as your dependents—so depending on your family, it can work out cheaper than National Health Insurance. National Health Insurance premiums are based on last year’s income, so ask your city office for an estimate and compare it against the voluntary-continuation premium before you choose.
Pension works similarly. If you’re between 20 and 59, don’t immediately join your next employer’s Employees’ Pension, and aren’t a dependent of a spouse who’s enrolled in it, you’ll need to switch to National Pension as a “Category 1 insured person.” If you go onto a spouse’s coverage, you become a “Category 3 insured person.” Many municipalities handle this at the same counter as health insurance, so bring your My Number card and proof of your Basic Pension Number and get it all done at once.
If you visit a clinic before switching over, you could end up paying the full cost out of pocket at the counter. And if premiums go unpaid, it can affect your future pension record too.
Chapter5: The 6-Month Rule for Transferring Company DC or iDeCo
If your old job had a company defined contribution pension (company DC), transferring it within six months of losing eligibility is your top priority. Miss the deadline, and your pension assets are cashed out and automatically moved to the National Pension Fund Association.
Once in this automatic-transfer state, you can’t direct how the money is invested. You lose any chance for growth, while fees keep coming out of your assets. At April 2026 levels, the costs look like this:
- Fee when automatically transferred: ¥4,348
- Management fee from the fourth month onward: ¥98 per month (¥1,176 a year)
- Fee to move it elsewhere later: from ¥550, depending on where it goes
Fees do get revised, so always check the latest figures with your plan administrator. On top of that, time spent in automatic transfer doesn’t count toward your total enrollment period—which could leave you unable to receive the money at 60.
Where to move it is simple: if your new job has company DC, move it there; if not, move it to iDeCo. In certain cases, your assets can be transferred to iDeCo or another company DC based on a check of your enrollment status, without you having to file a fresh request. But this doesn’t always happen, so it’s important to confirm the deadline and the transfer status yourself.
To decide between company DC and iDeCo, our comparison guide makes the choice easier.
If you’re receiving retirement pay, submit the “declaration form for retirement income” to your employer by the payment date. Retirement income gets favorable treatment: after subtracting the retirement income deduction, only half of what’s left is taxable, and the tax is calculated separately from your other income.
The retirement income deduction depends on your years of service:
- 20 years or less: ¥400,000 × years of service (minimum ¥800,000)
- More than 20 years: ¥8 million + ¥700,000 × (years of service − 20)
So, for example, 11 years of service gives you a ¥4.4 million deduction, and 30 years gives you ¥15 million—nothing below that is taxable. As long as you’ve submitted the form, your employer withholds the correct tax, and you generally won’t need to file a tax return.
Without the form, though, a flat 20.42% is withheld from the entire retirement payment.
Chapter7: When Your Income Changes, So Does Your Furusato Nozei Limit
Change jobs, and your income for the year can change—which means your furusato nozei limit changes too. So recalculate before you donate. Here’s the key point: the limit isn’t based on last year. It’s based on what you earn from January 1 to December 31 of the year you actually donate.
This trips people up after a job change. Say you had a stretch with no income between jobs. If you donate as if you’re still earning last year’s salary, you can easily go over your limit. And anything over the limit isn’t deductible—so your out-of-pocket cost climbs past the usual ¥2,000.
The fix is simple. Check your new payslips and your expected income for the year, then re-run your furusato nozei simulation closer to December. That gives you a much more accurate number.
As for claiming it: if you’re a salaried employee who normally doesn’t file a tax return, and you donate to five municipalities or fewer, you can use the One-Stop Exception—no tax return needed. But there’s a catch. In any year you do file a return—say, to claim a medical expense deduction—the One-Stop Exception no longer works. In that case, just record your donations as a deduction on your tax return instead.
Our furusato nozei guide walks through the steps.
Chapter8: Points Foreign Residents Often Forget: Residency Status and Notifications
If you work on a work-based status of residence, a job change comes with a legal duty: you must file a “notification regarding the contracting organization” within 14 days. Two things trigger it—leaving your old job, and signing with a new one:
- Left your old job? File within 14 days of your last day.
- Started a new job? File within 14 days of your first day.
- Doing both at once? There’s a single form that covers ending one contract and starting the next.
This isn’t optional. Skip it, and you risk a fine of up to ¥200,000—and it works against you at your next visa renewal. Having plenty of time left on your status doesn’t get you off the hook, either. Think of it as a completely separate thing from renewal.
You can file online through the Immigration Services Agency’s system, and normally either you or an authorized agent submits it. One thing people assume wrongly: your company does not do this for you automatically.
There’s also a bigger risk to know about. If you go more than three months after leaving without doing the work your status allows—and without a good reason—your status of residence can be revoked.
Chapter 9: Your Money Checklist for Changing Jobs
Here’s everything above, pulled together in the order it happens—from before you leave to after you start.
Before you leave
- Ask your old employer for four documents: your withholding slip, employment insurance certificate, proof of your Basic Pension Number, and certificate of health insurance disqualification.
- Confirm your residence tax with HR. Leaving between January and April? Brace for a smaller final paycheck, since the balance is taken in one lump sum.
- If you’re getting retirement pay, submit the “declaration form for retirement income” by the payment date.
Between jobs (if there’s a gap)
- Check how your health insurance switches over—Myna insurance card, qualification confirmation certificate, and so on. If you have a qualification confirmation certificate, ask your employer or insurer how it’s handled.
- Mark the deadlines on your calendar: health insurance within 14 or 20 days, pension within 14 days.
Within a set deadline
- Company DC: decide where to transfer within six months of losing eligibility, and keep the notice of membership disqualification.
- Residency notification: file it within 14 days of leaving, and within 14 days of starting.
After you start
- Give your old job’s withholding slip to your new employer, so it’s combined in your year-end adjustment.
- Recalculate your furusato nozei limit for the year.
Chapter 10: When to Consult a Professional
When you’re unsure, choosing the right expert for each area gets you to an answer faster. Here’s a rough guide to who handles what:
- Financial planner: reviewing your overall household finances, and planning your saving and investing around a change in income
- Tax accountant: whether you need to file a tax return, the tax on your retirement pay, and structuring a return that includes side income
- Administrative scrivener: changing your status of residence, various notifications, and applying for a certificate of authorized employment
A job change touches your money and your visa at the same time, and the right move often depends on your own situation. If you’d like a professional to look at yours, belongingJAPAN can connect you.
Chapter11: Frequently Asked Questions About Changing Jobs in Japan
Q. What happens to my residence tax when I change jobs?
Your payroll deductions stop for the time being, and you either switch to paying it yourself or have the deductions resume at your new job. If you leave between January 1 and April 30, the balance through May is generally taken in one lump sum from your final salary or similar. If you’d like to keep the deductions going at your new job, ask to arrange the handover by the 10th of the month after you leave.
Q. Do I need my withholding slip from my old job?
Yes. You’ll use it for the year-end adjustment at your new job, or for a tax return you file yourself. Employers are required to issue it within one month of your departure, so if it doesn’t arrive, it’s reassuring to check with your old job early.
Q. What should I do with my company DC?
Transfer it to your new job’s company DC or to iDeCo within six months of losing eligibility. Leave it, and your assets are cashed out and automatically transferred—investing stops, while fees keep coming out. Our comparison of company DC and iDeCo makes it easier to choose where to move it.
Chapter12: Summary
Once you’ve got the deadlines down, the money side of changing jobs is far from difficult. Before you leave, make sure you receive the four documents—starting with your withholding slip—and return your health insurance card.
Residence tax splits depending on the month you leave: either you switch to paying it yourself, or the balance is collected in one lump sum—and for a resignation between January and April, a sizable amount comes out of your final salary. If there’s a gap between leaving and starting, the deadlines are 14 or 20 days for health insurance, and 14 days for pension.
If you change jobs within the year, give your old withholding slip to your new employer for the year-end adjustment, and recalculate your furusato nozei limit. File your residency notification within 14 days, and you can head into your new workplace with peace of mind.
*This article is provided for general informational purposes only and does not constitute individual financial or legal advice. The figures shown here are based on the sources cited and will vary depending on your income, the month you leave, your years of service, and your residency status. Information is accurate as of August 2026. Residence tax handling, filing requirements, social insurance procedures, and immigration notifications differ case by case and may change with future reforms, so please confirm with your municipality, a certified financial planner, a tax accountant, an administrative scrivener, or the relevant authority before acting on any information in this article.
References:
- Ministry of Health, Labour and Welfare (Nagano Labour Bureau), “Guide to Procedures When Leaving a Job”
- Japan Pension Service, “Enrolling in the National Pension (Category 1 Insured Persons)”
- Japan Health Insurance Association (Kyokai Kenpo), “Voluntary Continuation of Health Insurance (FAQ)”
- iDeCo Official Site, “Procedures When Changing Jobs or Retiring”
