Money Hub Japan > English > National Pension for Foreigners
National Pension for Foreigners in Japan
A complete guide to Japan's two-tier pension system for foreign residents, including enrollment, contributions, exemptions, and what happens when you leave Japan.
Quick summary
- All foreign residents aged 20-59 living in Japan must enroll in the pension system (Kokumin Nenkin or Kosei Nenkin).
- Monthly contribution: ¥17,510 (FY2026 estimate) for Kokumin Nenkin; about 18.3% of salary (split with employer) for Kosei Nenkin.
- When leaving Japan permanently, you may claim a Lump-sum Withdrawal Payment if you contributed at least 6 months.
- Japan has totalization agreements with 24+ countries (US, UK, Germany, France, Korea, etc.) — contributions count toward home-country pensions.
- 40-year full contribution earns the maximum Basic Pension of about ¥69,000/month (¥828,000/year).
The two-tier system
| Tier | Who pays | Contribution (FY2026) |
|---|---|---|
| 1. Kokumin Nenkin (National) | Self-employed, students, unemployed, spouses of company workers | ¥17,510/month flat |
| 2. Kosei Nenkin (Employees) | Company employees, civil servants (covers Tier 1 automatically) | ~18.3% of monthly salary (split 50/50 with employer) |
If you work for a company, you only pay Kosei Nenkin (which includes the National Pension). If you become self-employed or unemployed, you must switch to paying Kokumin Nenkin yourself.
Enrolling and switching
- When you first move to Japan: register at your local ward office (Kuyakusho) within 14 days. They will enroll you in the National Pension (or Kosei Nenkin via your employer).
- When you change jobs: your new employer handles Kosei Nenkin enrollment. If you become self-employed, register for Kokumin Nenkin at the ward office.
- If you cannot pay: apply for an exemption (full / 3/4 / half / 1/4 reduction) based on income. Students can apply for the Student Payment Special Exception.
- Dependent spouse: a non-working spouse of a Kosei Nenkin enrollee is classified as Category 3 — contributions are paid through the working spouse with no direct cost.
Lump-sum Withdrawal Payment (Dattai Ichijikin)
If you contribute for at least 6 months and then leave Japan permanently, you can claim a partial refund of your contributions. This is one of the most asked-about topics among foreigners.
- Application deadline: within 2 years of leaving Japan (lose your Resident Registration / Juminhyo)
- Amount: depends on enrollment months (6-11 / 12-23 / 24-35 / 36-47 / 48-59 / 60+ months tiers)
- Kokumin Nenkin: up to about 5 years of refund — current cap around ¥495,000 (for 60+ months of contributions)
- Kosei Nenkin: up to about 5 years of refund — varies based on salary level
- Tax: 20.42% is withheld from Kosei Nenkin withdrawals. You can reclaim this via a tax representative (Nozei Kanri-nin) in Japan
- Process: file Form Q5 with your pension book, passport copy, bank info before leaving (or after)
Totalization agreements
Japan has bilateral social security agreements that prevent double-payment and allow combining contribution periods between countries.
Key agreement countries
- USA: Avoids double Social Security; combines periods toward US Social Security minimum (40 quarters)
- UK: Combines for UK State Pension minimum 10 years
- Germany: Combines for both countries' pensions
- Korea, China, India, Australia: Similar combining
- Full list (2026): 24+ countries — see Japan Pension Service website
If posted to Japan from a covered country for under 5 years, you can typically stay on home-country social security with a Certificate of Coverage.
Lump-sum or totalization: which is better?
- Take the Lump-sum: if you contributed only a few years and will likely not retire in a country with a totalization agreement, the immediate refund is often the better choice.
- Keep for totalization: if you contributed many years (10+) and your home country has an agreement, your Japan contributions may count toward your home country's minimum pension eligibility.
- Important caveat: claiming the Lump-sum forfeits your Japanese contribution period. You cannot use it for totalization afterward. Choose carefully.
Common questions
- Q. Can I avoid paying Japanese pension?
- Generally no — it's compulsory. If you're posted to Japan by a foreign employer in a totalization country, you can use a Certificate of Coverage. Otherwise, you must contribute.
- Q. What if I'm exempt for low income?
- Apply at your ward office. Full exemption still credits half-value to your future pension; partial exemptions credit proportionally. You can also pay back missed contributions within 10 years for full credit.
- Q. Will I really get a pension?
- Yes — Japan's pension system has been operating for decades and pays current retirees. Future amounts may adjust via the "macro-economic slide" mechanism, but contributions are guaranteed to count.