Is pension mandatory in Japan? A comprehensive guide for residents

Oct 14, 2025 3 min read •

Retirement Finance Expatriate Living

According to the Japan Pension Service, all registered residents of Japan aged 20 to 59 are legally required to contribute to the national pension system, including foreign residents. The specific requirements depend on your employment status, with different rules for salaried employees, self-employed individuals, and dependent spouses.

Quick Summary

The Japanese pension system is compulsory for most residents aged 20–59. Enrollment is automatic for employees, while others must register separately. Exceptions exist for low-income individuals and those covered by international social security agreements, but penalties can apply for non-payment.

Key Points

Mandatory for most residents: All registered residents in Japan, regardless of nationality, between the ages of 20 and 59 are legally required to be enrolled in a public pension system.
Two-tiered system: The public system consists of the flat-rate National Pension (Kokumin Nenkin) and the income-related Employees' Pension Insurance (Kosei Nenkin).
Employer-handled deductions: If you are a company employee, your employer handles the enrollment and deducts contributions from your salary automatically.
Self-payment required for some: Self-employed individuals, students, and freelancers must register for the National Pension and pay their fixed monthly premiums directly.
Penalties for non-compliance: Failing to pay contributions can lead to reminders, collection efforts by the JPS, and the loss of eligibility for pension benefits.
Exemptions and deferrals available: Individuals with low income or students can apply for exemptions or deferrals to postpone payment, which still protects some benefit eligibility.
Foreign residents can claim a refund: Non-Japanese residents leaving Japan can apply for a Lump-Sum Withdrawal Payment to receive a portion of their contributions back.
Social security agreements: Japan has agreements with many countries to prevent dual payments and allow contribution periods to be combined for pension eligibility.

Yes, Public Pension is Mandatory for Most Residents

Contributing to the public pension system is a legal requirement for nearly all residents of Japan, including foreign nationals with long-term visas. This system, managed by the Japan Pension Service (JPS), operates on an intergenerational support model. While mandatory for those aged 20 to 59, the method of contribution varies based on employment status.

The Two Main Tiers of Japan's Public Pension

Japan’s public pension system has two main tiers.

Tier 1: The National Pension (Kokumin Nenkin) covers all residents with a basic, flat-rate system. Category 1 insured persons pay a fixed monthly premium.

Tier 2: Employees' Pension Insurance (Kosei Nenkin) is an income-related plan for company and public sector employees. Category 2 insured persons are automatically enrolled via employers, with contributions split equally between employee and employer. This tier includes National Pension contributions. Dependent spouses (Category 3) of Category 2 members are covered by the National Pension at no extra cost if their income is below a threshold.

Exceptions, Exemptions, and International Agreements

While mandatory for most, options exist for those facing financial hardship, such as exemptions or deferrals for students and low-income individuals. Applying for these is crucial, as simply failing to pay can result in penalties. Japan also has social security agreements with many countries.

International Social Security Agreements

These prevent paying into two pension systems simultaneously and can allow combining contribution periods to meet the 10-year eligibility requirement for a Japanese pension.
Japan has agreements with over 20 countries.

Lump-Sum Withdrawal Payment for Foreign Residents

Non-Japanese residents leaving permanently after contributing for at least six months may be eligible for a lump-sum withdrawal, refunding up to 5 years of contributions. This forfeits future pension rights for that period.

Consequences of Non-Payment

Failure to pay mandatory contributions can lead to significant consequences. The JPS sends reminders and may pursue collection actions, including asset garnishment. Critically, non-payment jeopardizes eligibility for all benefits, including old-age, disability, and survivor pensions, during the unpaid period.

Comparison of Japanese Pension Contribution Types


Feature	National Pension (Kokumin Nenkin)	Employees' Pension Insurance (Kosei Nenkin)
Who Pays	Self-employed, students, freelancers (Category 1).	Employees at eligible companies and their employers (Category 2).
Contribution	Flat rate paid by the individual.	Income-based premium, split 50/50 between employee and employer.
Payment Method	Invoices sent by JPS, paid at banks, post offices, convenience stores, or via automatic transfer.	Automatically deducted from salary by employer.
Coverage Included	Basic pension benefits.	Basic pension + additional income-related pension benefits.
Dependent Spouse	Must register and pay if not covered under another category.	Covered at no additional cost if income is below a threshold.
Tax Deduction	Fully tax-deductible as social insurance for the individual.	Pre-tax via payroll for the employee's portion.

Conclusion: A Mandatory System with Support Options

Yes, pension is mandatory in Japan for most residents aged 20 to 59. The system includes the National Pension and Employees' Pension Insurance, providing old-age, disability, and survivor benefits. Support options like exemptions for low-income individuals and students exist.

Resources for More Information

For additional details, including contribution rates, exemptions, and information on social security agreements, the Japan Pension Service website offers comprehensive information in multiple languages. For more information, please see {Link: Japan Pension Service https://www.nenkin.go.jp/international/japanese-system/nationalpension/nationalpension.html}.

Frequently Asked Questions

Yes, the pension system is mandatory for all registered residents of Japan between the ages of 20 and 59, regardless of nationality. This applies to foreign residents as well as Japanese citizens.

If you fail to pay, the Japan Pension Service (JPS) will send reminders and may take collection action, which can include garnishing your assets. More importantly, you risk losing your eligibility for old-age, disability, and survivor pension benefits.

Self-employed individuals, students, and other non-employees (Category 1) must enroll themselves at their local municipal office and pay a fixed monthly National Pension premium using payment slips provided by the JPS.

Yes, a system of exemptions exists for those with limited income, as well as a special postponement system for students. If approved, these periods can still count towards your eligibility period for benefits.

The Employees' Pension is a supplemental, income-related pension for company and public sector employees. Contributions are split between the employee and employer and cover the basic National Pension automatically.

Non-Japanese citizens who contributed for at least six months and are leaving Japan can apply for a Lump-Sum Withdrawal Payment. The maximum refund is five years' worth of contributions, and you must apply within two years of departure.

You need a minimum of 10 years of total contributions (including exempted periods) to be eligible for a Japanese pension. The payment amount is then pro-rated based on your total contribution period.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.