Procedures

Pension / social security system in Japan

Yaaay team March 21, 2024
People around the subway entrance in a city in Japan 
Japan has social insurance systems. In principle, everybody residing in Japan must take part in the medical insurance and pension insurance system.
There are four kinds of insurance systems;
- Health Insurance
- Occupational Injury Insurance
- Unemployment Insurance
- Employees' Pension Insurance

In this article, we will talk about Employees' Pension Insurance.

Foreigners are also obliged to participate in the public pension system

The public pension system is a system under which monthly payments are made to receive benefits in the event of disability, death, retirement, or other risks. Japan's public pension system provides universal coverage through a social insurance installment system.
All residents of Japan between the ages of 20 and 60 (employees under the age of 70 are also subject to mandatory enrollment for employee pension insurance) are obligated to participate in the Japanese public pension system. There are two types of public pension plans: Employees' Pension Insurance for employed workers and National Pension Plan for self-employed workers. Even foreigners must join one of these schemes as long as they reside in Japan.
※Some countries do not require pension payments in Japan.

Types of Pensions You Can Receive

The role of the Japanese pension system is not only to prepare for retirement. In addition to providing pensions in retirement, the system also provides pensions in the event that a beneficiary becomes disabled. In addition, if a beneficiary dies, a pension will be paid to his/her surviving family members. In other words, it also functions as disability and death insurance.

The following three types of pensions are payable when the conditions are met.

- Old-age pension
A certain amount of money will be paid every month when a beneficiary reaches 65 years of age or older. However, he/she must have paid insurance premiums for at least 10 years (120 months).

- Disability Pension
A certain amount is paid when a beneficiary's disability exceeds the criteria for disability certification.

- Survivor's Pension
When a beneficiary dies, a certain amount of money is paid to his/her surviving family members, such as children and spouse.

About the Lump-sum Withdrawal Payment

The Lump-sum Withdrawal Payment is money received when a foreign national leaves the Japanese public pension system when he/she no longer resides in Japan. After losing the status of an insured person of Employees' Pension Insurance, the Lump-sum Withdrawal Payment will be paid if claimed within two years from the date of leaving Japan and no longer having a domicile in Japan. The requirements for receiving the Lump-sum Withdrawal Payment under the Employees' Pension Insurance are as follows:

・Does not have Japanese citizenship
・Not covered by the Employees' Pension Insurance or the National Pension Plan
・Have been insured under the Employees' Pension Insurance for at least 6 months
・Not eligible to receive the old-age pension (10 years)
・Never been entitled to receive other pensions such as disability pensions
・Do not have a domicile in Japan
・No more than two years have passed since losing the qualification of being insured under the Employees' Pension Insurance

English-language materials on public pensions system are also available

Even if you are a foreigner, you are basically required to join the Japanese pension system, but there are differences depending on your home country and the length of your stay in Japan.
If you have any questions or concerns, please ask the person in charge at the company to clarify.

The Japanese Ministry of Health, Labor and Welfare and the Japan Pension Service have published materials in English, so please check there as well.
MHLW Pension Bureau:
https://www.mhlw.go.jp/english/policy/pension/pension/index.html
Japan Pension Service:　https://www.nenkin.go.jp/international/index.html

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