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What You’ll Learn from This Article
- Whether foreign workers in Japan must join the pension system
- The types of pensions you can receive while working in Japan
- What the Lump-Sum Withdrawal Payment is and how to claim it when leaving Japan
- How social security agreements help avoid double payments
- Do Foreign Workers Need to Join the Pension System in Japan?
- What Types of Pensions Can Foreigners Receive?
- What Is a Social Security Agreement?
- What Is the Lump-Sum Withdrawal Payment?
- After Leaving Japan: What Happens to Your Pension Premiums?
- Don’t Forget Your Final Apartment Cleaning Before Moving Out!
- Summary: Foreign Workers Must Join Employees’ Pension Insurance in Japan
Do Foreign Workers Need to Join the Pension System in Japan?
In Japan, everyone aged 20 to 60 who lives and works here must join the public pension system. This rule applies to both Japanese and foreign residents.
There are two main types of public pensions in Japan:
- Employees’ Pension Insurance (Kosei Nenkin Hoken) for company employees
- National Pension (Kokumin Nenkin) for freelancers and self-employed individuals
If you work for a company, your employer must enroll you in Employees’ Pension Insurance.
The pension premium is automatically deducted from your salary every month, and the cost is shared equally between you and your company. This is the same system as for Japanese employees.
If your company is not covered by the Employees’ Pension system, you must enroll in the National Pension system yourself and pay the full amount on your own.
What Types of Pensions Can Foreigners Receive?
Foreign residents in Japan may be eligible for the following pension benefits:
- Disability Pension: If you suffer a disability due to illness or injury while working.
- Survivors’ Pension: If a worker dies, their dependent family members may receive this benefit.
- Old-Age Pension: If you have contributed to the pension system for 10 years or more, you may receive a pension when you reach retirement age.
- Lump-Sum Withdrawal Payment: A one-time payment you can claim when leaving Japan, under certain conditions.
What Is a Social Security Agreement?
You may wonder, “Do I have to pay into both my home country’s and Japan’s pension systems?”
To solve this problem, Japan has signed Social Security Agreements with many countries. These agreements help in two main ways:
- Prevent double payments of pension premiums in both countries
- Allow you to combine contribution periods from both countries to qualify for pensions
Countries that have signed this agreement with Japan include the U.S., Germany, South Korea, France, and others.
However, the coverage varies by country. Some agreements only cover the prevention of double payments, while others also allow combining pension contribution periods.
What Is the Lump-Sum Withdrawal Payment?
If you leave Japan after working here, you may be able to claim a one-time payment called the Lump-Sum Withdrawal Payment.
To qualify, you must:
- Have paid into Employees’ Pension Insurance for at least six months
- Be a foreign national (not Japanese)
- No longer live in Japan
- File a claim within two years of leaving Japan
But there are important points to keep in mind:
- If you claim this payment, you will lose your right to receive a Japanese pension in the future
- You will only get part of your contributions back, not all of them
- If your home country has a social security agreement with Japan, it might be better not to claim this payment, so you can combine your contribution periods later
Think carefully before deciding to claim the Lump-Sum Withdrawal Payment.
After Leaving Japan: What Happens to Your Pension Premiums?
Once you leave Japan and stop working, you no longer need to pay Japanese pension premiums.
Your employer will take care of the withdrawal process, so you don’t need to handle this yourself.
However, before leaving Japan, make sure to submit a moving-out notification at your local city office. This step is important if you plan to claim the Lump-Sum Withdrawal Payment later.
Don’t Forget Your Final Apartment Cleaning Before Moving Out!
If you’re leaving Japan and moving out of your apartment, there’s one important thing to remember: end-of-lease cleaning.
Most landlords and property management companies in Japan require you to leave your apartment clean and ready for the next tenant.
If you don’t have time—or just don’t want the hassle—professional cleaning services are a great option.
One service often used by foreigners living in Japan is R-Cleaning, a professional home cleaning company.
Why choose R-Cleaning?
- Clear, fixed pricing
- Easy online booking (Japanese language website)
- No need to prepare cleaning tools—the staff will bring everything
With so much to do before leaving—like canceling utilities, packing, and applying for your Lump-sum Withdrawal Payment—
outsourcing your cleaning can save you time and stress.
Summary: Foreign Workers Must Join Employees’ Pension Insurance in Japan
If you work as a company employee in Japan, you are required to join the Employees’ Pension system—even if you are a foreign national.
Check whether your home country has a social security agreement with Japan to avoid double payments and protect your pension rights.
If you plan to leave Japan, think carefully about whether to claim the Lump-Sum Withdrawal Payment, as it could affect your future pension benefits.
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