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Japan Pension for Foreigners (2026): What You Must Pay, How to Get a Refund When You Leave, and the Exemptions Nobody Tells You About

Updated September 2026  |  Japan Figured Out Editorial Team

Most foreigners think of Japan's pension system as money they'll never see again — a tax in disguise.

The reality is more nuanced. Yes, you must enroll. Yes, it's mandatory regardless of how long you plan to stay. But when you leave Japan, you can claim a significant portion of your contributions back — and many foreigners miss this entirely because the deadline is only 2 years after departure.

And if you can't afford to pay? There are legal exemptions that keep your record clean and protect your visa — but you have to apply for them. Ignoring the bills is the one thing you cannot do.

This guide covers everything: what you owe, how to reduce it, and how to get your money back when you leave.

🏛️ Japan's Two-Tier Pension System

Japan has two pension programs. Which one you're in depends on how you're employed:

Pension Type	Who Pays	Cost (2026)	Who Enrolls You
Employees' Pension Insurance 厚生年金 (Kosei Nenkin)	Full-time company employees	~14.996% of salary — split equally between you and employer	Your employer (automatic)
National Pension 国民年金 (Kokumin Nenkin)	Self-employed, freelancers, students, part-time workers, unemployed, between jobs	¥16,980/month flat rate (2026)	You enroll yourself at city hall

⚠️ Enrollment is mandatory for ALL foreign residents aged 20–59. There are no exemptions based on nationality, visa type, or how long you plan to stay. Japan's National Pension Act applies equally to Japanese and foreign residents. Not enrolling is not an option — it creates unpaid record gaps that can affect your visa renewal.

💡 Company employees: Check your first payslip for 厚生年金保険料 (Kosei Nenkin Hokenryo). If you see it, you're enrolled automatically — no action needed. If you don't see it after your first month, ask HR immediately.

💴 How Much Does Kokumin Nenkin Cost? (2026)

If you're paying National Pension yourself (not through an employer), the monthly premium is:

¥16,980 per month (FY2026)

That's approximately ¥203,760 per year if you pay every month.

How to pay:

• Monthly via payment slips (delivered by mail) at any convenience store, post office, or bank
• 6-month or 1-year prepayment earns a small government discount (approximately ¥3,000 off for a full-year prepayment)
• Direct debit from your Japanese bank account

💡 Save money by paying in advance. Annual prepayment gives you a small but real discount. If your finances are stable, paying 12 months at once is the cheapest option.

📉 Can't Afford to Pay? Legal Exemptions and Reductions

This is what most guides don't tell you. If you cannot afford the monthly premium, do NOT ignore the bills. Instead, apply for a legal exemption or reduction — it protects your visa and your pension record.

⚠️ Ignoring pension bills vs. applying for exemption are completely different things. Unpaid and unaddressed bills = visa renewal risk + growing debt. Approved exemption = no payment required, visa safe, period still counts toward pension eligibility.

4 Levels of Exemption (Based on Household Income)

Level	Income Threshold	You Pay	Counts Toward Pension?
Full Exemption (全額免除)	Taxable income under ~¥570,000	¥0	Yes — counts as 1/2
3/4 Reduction	Low income	¥4,245/month	Yes — counts as 5/8
1/2 Reduction	Moderate low income	¥8,490/month	Yes — counts as 3/4
1/4 Reduction	Higher low income	¥12,735/month	Yes — counts as 7/8

Student Special Exception (学生納付特例)

If you're a student, you can apply for the Student Payment Special Exception — this postpones your pension payments while studying without penalty.

• Apply at your ward office with your Residence Card and student ID
• Must be renewed every April
• The postponed period does NOT count toward pension eligibility (unlike exemptions) — but it can be paid back retroactively within 10 years if you choose

How to Apply for Exemption

1. Go to your local city or ward office
2. Ask for the 免除申請書 (menjo shinseisho — exemption application form)
3. Bring your Residence Card, pension notification, and income documents if available
4. Applications can be made retroactively for up to 2 years and 1 month — you can fix past unpaid periods
5. Approval is usually straightforward for low-income applicants

✅ Key point: Even with a full exemption, the period counts toward your 10-year eligibility requirement for a future pension — at half credit. You're building your pension record without paying. This is the correct move if you genuinely cannot afford the premium.

💰 Getting Your Pension Back When You Leave Japan

This is the section most foreigners wish they'd known about sooner.

If you leave Japan permanently and don't plan to retire here, you can claim a Lump-Sum Withdrawal Payment (脱退一時金 / Dattai Ichijikin) — a partial refund of your pension contributions.

Who Is Eligible?

You must meet ALL of the following:

• You are NOT a Japanese national
• You have paid pension premiums for at least 6 months
• You no longer have a registered address in Japan (you've left)
• You have never been eligible to receive a Japanese pension benefit
• You have never claimed this refund before

⚠️ THE MOST IMPORTANT RULE: You must apply within 2 years of leaving Japan. Miss this deadline and the money is gone forever — no extensions, no exceptions. Most foreigners don't know about this until it's too late. You do now.

How Much Can You Get Back?

Kokumin Nenkin (National Pension):

• Refund is based on number of months contributed
• Maximum refund is capped at 60 months (5 years) of contributions
• Refund is tax-free

Kosei Nenkin (Employees' Pension):

• Refund is calculated based on a formula using your average salary and months contributed
• No cap — longer contributions = larger refund
• 20.42% tax is withheld automatically when the refund is paid
• You CAN recover this withheld tax by appointing a tax representative in Japan and filing a tax refund claim — but it requires an extra step

💡 Example refund amounts (Kokumin Nenkin, FY2026 rates):

• 6 months paid → approximately ¥50,940
• 12 months paid → approximately ¥101,880
• 36 months paid → approximately ¥305,640
• 60 months paid (maximum) → approximately ¥509,400

Always check the Japan Pension Service's official table for the current fiscal year before filing.

Step-by-Step: How to Claim Your Pension Refund

1. Submit your moving-out notification (転出届 / tenshutsu todoke) at your ward office before leaving Japan — this is what officially removes you from the Japanese resident register
2. Keep your pension number (基礎年金番号 / kiso nenkin bango) — you'll need it for the refund application. Find it in your pension book or on a pension statement.
3. Leave Japan
4. Download the Lump-Sum Withdrawal Payment Claim Form from the Japan Pension Service website (nenkin.go.jp). Available in English, Chinese, Korean, Portuguese, Spanish, Vietnamese, and many other languages.
5. Fill out the form with your overseas bank account details
6. Mail the completed form and documents to the Japan Pension Service from your home country
7. Wait 2–6 months — the refund is wired directly to your overseas bank account

Documents Needed for the Refund Application

• Completed Lump-Sum Withdrawal Payment Claim Form
• Copy of your passport (name, date of birth, nationality, signature, and visa status pages)
• Copy of your pension book or document showing your pension number
• Your overseas bank account details — bank name, branch name and address, account number, IBAN or SWIFT/BIC code
• Proof you no longer have a Japanese address (if you submitted a moving-out notification, this is usually not needed)

🌐 Totalization Agreements — Does Your Country Have One?

Japan has social security totalization agreements with several countries. These prevent double-pension contributions for people working temporarily in Japan on assignment from their home country employer.

Countries with totalization agreements with Japan (as of 2026): Germany, UK, South Korea, United States, Belgium, France, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia, China, Finland, Sweden, Italy, and others.

If your country is on this list and you're on a temporary assignment from your home employer, ask your HR department about a Certificate of Coverage — this may exempt you from Japanese pension enrollment while maintaining your home country coverage.

⚠️ 2026–2027 Enforcement Warning

Japan is significantly tightening pension compliance enforcement:

• From June 2027, immigration will formally check pension payment compliance during visa renewals
• Unpaid pension contributions already create complications for permanent residency applications
• A 2024 law allows Japan to revoke permanent residency for willful non-payment, starting around 2027
• Retroactive exemption applications (up to 2 years and 1 month back) can fix past unpaid gaps — but only if you apply proactively

⚠️ If you have unpaid pension bills sitting at home, act now. Pay what you can, or go to your ward office and apply for exemption. Do not wait for the government to contact you — by then, the impact on your visa is already documented.

❌ Common Mistakes Foreigners Make

• Ignoring pension bills because "I'm leaving soon anyway" — unpaid bills affect your visa renewal and visa applications. Apply for exemption instead.
• Not knowing about the lump-sum refund — you've been paying in; you're owed money back when you leave. Apply within 2 years.
• Missing the 2-year refund deadline — set a calendar reminder the day you leave Japan.
• Not submitting a moving-out notification — without this, you may still be counted as a Japan resident and unable to claim your refund.
• Losing your pension book or forgetting your pension number — keep it safe. You need it for the refund application.
• Not recovering the 20.42% tax withheld on Kosei Nenkin refunds — appoint a tax representative and file a tax refund claim to get this back.
• Assuming employer enrollment = complete coverage — if you leave your company, you must switch to Kokumin Nenkin within 14 days.

✅ Quick Summary

Topic	Key Point
Who must enroll	All foreign residents aged 20–59 — no nationality exemptions
Company employees	Kosei Nenkin — employer enrolls you automatically
Self-employed / students / unemployed	Kokumin Nenkin — enroll at city hall yourself
Monthly cost (2026)	¥16,980/month (Kokumin Nenkin)
Can't afford it?	Apply for exemption at city hall — do NOT ignore bills
Refund when leaving	Lump-Sum Withdrawal Payment — apply within 2 years of departure
Refund eligibility	Minimum 6 months of contributions
Kosei Nenkin refund tax	20.42% withheld — can be recovered by filing a tax claim
2027 enforcement	Unpaid pension can block visa renewal and permanent residency

Japan's pension system feels complicated, but the rules are actually straightforward once you understand them. Enroll, pay (or apply for exemption if you can't), and when you leave — claim your refund within 2 years. That's it. The foreigners who lose money are the ones who didn't know the refund existed, or who waited too long to apply.