Japan's Pension System

1. Basic Structure of Japan's Pension System (Two-Tier Structure) Japan's pension system is based on the principle of "universal pension coverage," meaning all residents of Japan aged 20 to under 60 are required to enroll.

Tier 1: National Pension (Basic Pension) In principle, everyone aged 20 to under 60 must enroll. Receiving the full amount requires 40 years (480 months) of premium payments. Tier 2: Employees' Pension Insurance Company employees and public servants enroll in this in addition to the National Pension. Premiums are a fixed rate based on salary and bonuses (shared equally between employer and employee). Tier 3: Private Pensions, etc. (Optional) Includes corporate pensions (defined-benefit corporate pension plans, corporate defined-contribution pension plans, etc.) and individual defined-contribution pension plans (iDeCo).

2. Categories of Insured Persons | Category | Who It Applies To | How Premiums Are Paid | | Category 1 Insured Persons | Self-employed individuals, freelancers, students, unemployed persons, etc. | The person pays a fixed premium amount themselves | Category 2 Insured Persons | Company employees, public servants, etc. (enrolled in Employees' Pension Insurance) | Deducted from salary (shared equally with the employer) | Category 3 Insured Persons | Spouses aged 20 to under 60 who are dependents of a Category 2 Insured Person | No individual payment required (covered by the system as a whole)

3. Main Types of Benefits Old-Age Pension (Old-Age Basic Pension / Old-Age Employees' Pension) In principle, payments begin at age 65 (a minimum qualifying period of 10 years is required). You can choose to start receiving payments earlier or later, between ages 60 and 75. Disability Pension (Disability Basic Pension / Disability Employees' Pension) Paid when an illness or injury results in a certain level of disability. Survivors' Pension (Survivors' Basic Pension / Survivors' Employees' Pension) Paid to surviving family members when an insured person or pension recipient passes away.

4. Practical Points to Check for Foreign National Employees Expansion of Social Insurance Coverage for Part-Time Workers Requirements for Employees' Pension enrollment for part-time and casual workers are being gradually relaxed, depending on company size, working hours, and monthly wage conditions. Please check the applicable requirements at your workplace. Lump-Sum Withdrawal Payment System (For Foreign National Employees) Foreign nationals who have been enrolled in Japan's pension system for at least 6 months, but leave Japan without meeting the 10-year qualifying period needed to receive a pension, can apply within 2 years of returning to their home country to receive a portion of their paid premiums as a "Lump-Sum Withdrawal Payment" (up to a maximum of 5 years' worth).

Social Security Agreements Please check whether a Social Security Agreement exists between Japan and your home country, as such agreements may prevent "double coverage" and allow for "totalization of pension enrollment periods."

*This document provides a general overview of the system. For decisions on individual eligibility, benefit qualification, or specific procedures, please consult your local Pension Office or a Social Insurance and Labor Consultant (Sharoushi).