Japan's Public Pension System: A Plain-Language Overview for Residents

A general guide to the National Pension and Employees' Pension, who joins, how contributions work, and what lump-sum withdrawal payments are for people leaving Japan.

Published October 20, 2026 at 11:05 AM JST | By Tokyo Paul

Quick answer: Japan's public pension has two main layers. The National Pension covers registered residents aged 20 to 59, including foreign residents, and the Employees' Pension is added for company employees, with the employer and employee sharing premiums. The Japan Pension Service administers both. Non-Japanese residents who leave after a short coverage period can apply for a lump-sum withdrawal payment.

The two layers

Japan's public pension is organized in two layers. The first is the National Pension, a basic pension that residents aged 20 to 59 are required to join, whatever their nationality. The second is the Employees' Pension Insurance, which covers people who work for companies and certain public bodies and adds an earnings-related benefit on top of the basic pension. Together they provide old-age, disability and survivors' benefits. The public pension is the common foundation that nearly everyone in Japan shares, and it sits alongside any private savings or workplace plans a person may have.

The Japan Pension Service administers the system on behalf of the government, and its English pages explain the rules for foreign residents. Because the national system is the basis, even those working for a company are covered by the basic pension automatically through the employer, without a separate application.

Who joins and in which category

The National Pension divides insured people into three categories. Category 1 is made up of self-employed people, farmers, students and others who are not in the other two groups. Category 2 consists of people enrolled in Employees' Pension Insurance or a public-sector mutual aid association, and enrollment happens automatically through the employer. Category 3 is for dependent spouses aged 20 to 59 of Category 2 members.

People in Category 1 must register themselves at their municipal office, generally within 14 days of becoming covered. Employees are registered by their employer. Voluntary enrollment is open to some residents aged 60 to 64 and to Japanese citizens living abroad, according to the Pension Service English pages, which also note that foreign nationals on certain visa types, such as medical stays or long stays for sightseeing, cannot use it. Check your own status with the municipal office.

If you arrive in Japan and later start work at a company, you are covered in Category 1 until the change. Check with the municipal office whether anything needs to be cancelled or updated, so that your record stays tidy.

Paying contributions

Category 1 members pay a flat monthly premium. The Japan Pension Service English pages give it as 17,510 yen for fiscal year 2025 and 17,920 yen for fiscal year 2026, though figures are revised each year, so check the current amount. Payment methods are explained in the notices sent after enrollment, so follow those instructions.

For employees, premiums are a percentage of pay shared evenly by the employer and employee, and the employer deducts the employee's share and pays the total. Part-time employees are covered when they meet conditions on weekly hours, expected length of employment, monthly wage and workplace size, and those conditions have been widened in stages, including a change from October 2024 for workplaces with more than 50 employees.

Exemptions are available for people who have difficulty paying, and the Pension Service explains that a fully exempted month counts toward benefits at a reduced share, half of a fully paid month for periods since April 2009. One application covers up to one year, so it is renewed each year if needed at the municipal office, and past exempt months can be paid up later within a set period of up to ten years.

What the pension provides

The old-age basic pension starts at age 65 for those with at least ten years of combined coverage. The full yearly amount for forty years of payments is published by the Japan Pension Service and updated annually. Early payments from age 60 are possible at a reduced rate, and starting later than 65 increases the amount. The Employees' Pension has its own rules about the age at which payments begin, and they have been raised in stages according to date of birth, so the right date depends on when you were born.

The system also provides disability and survivors' pensions for eligible people, and a lump-sum death benefit in some cases. Employees' Pension adds an earnings-related amount for those who were covered by it. Eligibility and amounts depend on contribution records, so ask a Pension Service office about your own situation.

Your pension number and records

After you enroll, you receive a basic pension number, which appears on the pension handbook or a notice mailed to your address. Keep it, because the number is often needed for procedures such as applying for benefits or a lump-sum withdrawal payment.

Report changes of name, address or bank account as the Pension Service or your municipal office instructs. Social security agreements between Japan and several countries can help avoid double payments or allow coverage periods to be combined, and the Pension Service explains these on its website.

Leaving Japan: lump-sum withdrawal payments

Some foreign residents pay into the system for a short time and then leave Japan without qualifying for a pension. For them there is the lump-sum withdrawal payment. Official information says it is for non-Japanese nationals with short coverage periods under the National Pension or Employees' Pension who are no longer covered. The Pension Service English pages describe a requirement of at least six months of coverage as a National Pension Category 1 member, and a city guide describes a similar six-month minimum.

You must apply within two years after leaving Japan. Application forms are published in multiple languages, with example entries, and the amount is worked out from your contribution record, as explained on the official forms. Because the rules, the number of months counted and tax procedures can change, always read the current official page. Before leaving, ask your employer or municipal office what to submit, and keep your pension number and passport details at hand.

Practical guidance for new residents

Register early, keep your documents and review your payment status once a year. If you work for a company, check that your employer has enrolled you in both the pension and health insurance. If you are a student or freelancer, make sure you register in Category 1 and look into exemptions if you cannot pay.

This guide shares general information; rules change, so confirm details with the official agency or provider before you act. The Japan Pension Service and your municipal pension counter can give answers for your specific case. Pension rules involve long time spans and several kinds of benefit, including ones many people never think about, such as the disability and survivors' pensions that protect families, so a short visit to the counter now can prevent complications years later. Keep copies of notices and receipts, and note the dates of any exemption applications so that you can show your record if questions arise.

Frequently Asked Questions

Do foreign residents have to join the Japanese pension?

Generally yes. Registered residents aged 20 to 59 must be covered by the National Pension, whatever their nationality, and employees are enrolled through their employer. Some visa types are excluded, so confirm your status with the municipal office or the Japan Pension Service.

What is a lump-sum withdrawal payment?

It is a payment available to non-Japanese residents who paid into the pension for a short period and then left Japan. You must no longer be covered and must apply within two years of leaving. Check the Pension Service page for current conditions and forms.

How much is the National Pension premium?

For Category 1 members it is a flat monthly amount that is revised each year. The Japan Pension Service English pages list 17,510 yen for fiscal year 2025 and 17,920 yen for fiscal year 2026. Exemptions are available for low income, so ask your municipal office.

Want to go deeper? Tokyo Paul's book Building a Life in Japan is available on Amazon.

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