How much pension do you pay in Japan?

According to the Japan Pension Service, the National Pension premium is set at ¥17,510 per month for the 2025 fiscal year. Understanding how much pension do you pay in Japan depends on whether you are self-employed or a company employee, as the system is split into two distinct tiers.

Quick Summary

Japan's pension contributions vary significantly based on employment status, with all residents aged 20–59 required to pay a flat-rate National Pension premium. Employed individuals also contribute to an earnings-related Employees' Pension Insurance, which is split with their employer. This two-tiered system determines your total payment and future benefits.

Key Points

• Two-Tiered System: Japan's pension includes a basic National Pension (国民年金) for all residents and an earnings-related Employees' Pension Insurance (厚生年金保険) for salaried workers.

• National Pension Rate: For fiscal year 2025, the fixed monthly National Pension premium is ¥17,510, paid by the self-employed, students, and unemployed.

• Employees' Pension Rate: Company employees pay 9.15% of their monthly salary and bonus, with their employer matching the same amount for a total rate of 18.3%.

• Exemptions and Postponements: Low-income residents and students can apply for exemptions or postponements of National Pension payments, preventing penalties and counting toward eligibility.

• Lump-Sum Withdrawal for Expats: Non-Japanese residents can reclaim up to five years of contributions via a lump-sum payment upon leaving Japan, subject to certain conditions.

• Voluntary Savings: Additional savings can be made through supplementary plans like iDeCo, which offers tax benefits for those looking to boost their retirement income.

Japan's two-tiered public pension system

Japan's public pension system is structured into two main tiers. The first tier is the National Pension (国民年金), a basic, flat-rate pension for all Japanese residents between 20 and 59. The second tier is the Employees' Pension Insurance (厚生年金保険), an earnings-related plan for company employees.

Tier 1: National Pension (国民年金)

All residents (aged 20-59), including students, the self-employed, and unemployed, are categorized as Category 1 insured persons and must pay the National Pension premium. For fiscal year 2025, the monthly premium is ¥17,510. Payments are made individually using invoices from the Japan Pension Service (JPS). Those with low income may apply for contribution exemptions or postponements. Dependent spouses of employees (Category 3 insured persons) are covered without individual contributions.

Tier 2: Employees' Pension Insurance (厚生年金保険)

Individuals working for companies or the public sector are enrolled in the Employees' Pension Insurance (EPI). Contributions cover both the National Pension and an additional earnings-related portion. The total contribution rate is 18.3% of your salary, split equally between the employee and employer (9.15% each). This is calculated based on your standard monthly remuneration and includes contributions on bonuses, up to a monthly cap.

Comparison of pension contributions in Japan

Below is a comparison of pension contributions based on the fiscal year 2025 rates.

	Self-employed (Category 1)	Company Employee (Category 2)
Contribution	Flat-rate monthly premium.	Percentage of salary and bonus.
Premium (2025)	¥17,510 per month.	9.15% of your standard monthly remuneration and bonus.
Employer Contribution	None.	Yes, the employer pays an equal 9.15% share.
Calculation Method	Fixed amount.	Calculated as a percentage of your salary and bonuses, up to a monthly cap on remuneration.
Automatic Deduction	No, must be paid by individual.	Yes, automatically deducted from monthly salary.
Exemption Eligibility	Yes, if income is low.	No, deductions are automatic.

Foreigners and expats: Special considerations

Foreign residents are subject to the same pension contribution rules as Japanese nationals. Japan has social security agreements with various countries to prevent dual coverage. Non-Japanese citizens who contributed for at least six months and leave Japan can claim a lump-sum withdrawal payment covering up to five years of contributions.

Potential pitfalls and ways to maximize your pension

To maximize benefits, consider applying for exemptions or postponements if your income is low, as approved periods count towards your qualifying period. Catch-up payments for exempted periods are possible for up to 10 years. Self-employed individuals can make voluntary contributions to increase future benefits. Additionally, residents can supplement their public pension with the tax-advantaged iDeCo private pension plan.

Conclusion: Your pension in Japan is based on your status

Your pension contributions in Japan depend on your employment status. Self-employed individuals pay a flat monthly rate, while company employees have an earnings-related percentage deducted, which is matched by their employer. Foreign residents are included in the system but have specific provisions. Understanding your category and options is key to managing contributions and maximizing retirement benefits.

A comprehensive breakdown of the different contribution rates and benefits can be found on the Japan Pension Service website.

Frequently Asked Questions

What is the monthly National Pension contribution in Japan for 2025?

For the fiscal year 2025 (April 2025 to March 2026), the monthly National Pension premium is ¥17,510. This is a flat rate for self-employed individuals, students, and other residents not covered by an employer's plan.

How do pension contributions work for company employees in Japan?

If you are a company employee, you contribute to the Employees' Pension Insurance (EPI). Your employer automatically deducts 9.15% of your salary, and the company pays an equal 9.15% portion, for a total contribution of 18.3%.

Can foreigners get a pension in Japan?

Yes, all residents of Japan aged 20–59, including foreigners, are required to be enrolled in the National Pension system. Foreigners working for a company will also be enrolled in the Employees' Pension Insurance.

Is it possible to get a refund on my Japanese pension contributions?

Yes, non-Japanese citizens can apply for a lump-sum withdrawal payment if they have contributed for at least six months and are leaving Japan. This payment covers a maximum of five years of contributions.

What happens if I can't afford my National Pension payment?

If you have a low income, you can apply for a full or partial exemption or postponement of National Pension payments at your local municipal office. It is recommended to apply for an exemption rather than simply not paying.

How are Japanese pension benefits calculated?

National Pension benefits are calculated proportionally based on the number of months contributed. For Employees' Pension, benefits are based on your average standard monthly remuneration and bonus amounts over your career, alongside the number of months contributed.

What is iDeCo in Japan?

iDeCo is a voluntary, tax-advantaged individual defined contribution pension plan available to many Japanese residents. It allows you to supplement your public pension with personal investments, and the contribution limits vary depending on your employment status.