Have you ever wondered, “What will happen to my pension after I leave Japan?” Many foreigners who work in Japan think that once they return home, their pension contributions will simply be lost. However, under certain conditions, it is possible to receive part of your pension contributions back in cash through the system known as the Lump-sum Withdrawal Payment.
In this column, a certified labor and social security attorney (Shakai Hoken Roumushi) will explain who is eligible for the payment, the requirements, the application process, calculation methods, and even how taxation is handled.
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目次
１．What is the Lump-sum Withdrawal Payment?
The Lump-sum Withdrawal Payment is a system that allows foreign nationals who have contributed to Japan’s public pension programs (the National Pension or Employees’ Pension Insurance) for a certain period to receive a portion of their contributions back in cash after they return to their home country.
In principle, you need to have at least 10 years of coverage in Japan’s pension system to qualify for a regular pension benefit. Therefore, for foreign nationals who only stay in Japan temporarily, this system functions as a relief measure to prevent their contributions from being lost entirely.
Let us now take a closer look at how the system works.
１－１．Eligible Recipients
Only foreign nationals who meet all of the following conditions are eligible to receive the Lump-sum Withdrawal Payment. If any condition is not satisfied, the application will be rejected. Therefore, it is important to check in advance.
| CONDITIONS | DETAIL |
|---|---|
| Nationality requirement | You must not hold Japanese nationality. |
| Coverage requirement | You must have been enrolled in the National Pension or Employees’ Pension Insurance for at least six months. |
| Residency requirement | You must no longer have a registered residence in Japan. ※You must have already returned to your home country. |
| Benefit requirement | You must never have received a pension benefit before. |
Examples of Eligible Persons
- Foreign nationals who worked in Japan under a work visa (「技術・人文知識・国際業務」etc.）
- International students enrolled under a student visa.
- Workers employed under the Specified Skilled Worker visa（「特定技能」）for a fixed period.
Examples of Non-eligible Cases
- Individuals who have acquired Japanese nationality (through naturalization).
- Permanent residents (foreign nationals with a permanent residence visa).
- Those who already qualify for pension benefits (in principle, those with at least 10 years of coverage).
※Please note especially that permanent residents are not eligible. This point is often overlooked.
１－２．Requirements for Receiving the Payment
- You must no longer be an insured person under the pension system.
This means you must have lost your insured status under the National Pension or Employees’ Pension Insurance.
- Application must be filed within two years from the date of losing insured status.
You need to apply within two years from the day you last lost your insured status.
- Address requirement.
If you still had a registered address in Japan when you lost your insured status, you must first deregister that address and then apply within two years.
If even one of these requirements is not met, you will not be eligible for the Lump-sum Withdrawal Payment. Also, please note carefully the “two-year application deadline.” If you delay your application after returning home, you risk losing your entitlement. It is strongly recommended that you proceed with the application as soon as possible after leaving Japan.
２．How to Calculate the Payment Amount
The amount of the Lump-sum Withdrawal Payment varies depending on which pension system you were enrolled in. In this section, we will explain in detail the calculation methods for both the National Pension and the Employees’ Pension Insurance.
２－１．National Pension
The Lump-sum Withdrawal Payment under the National Pension is calculated using the following formula.
Amount of National Pension contribution in the fiscal year of the last paid month × 1/2 × The calculation number based on the months of contribution |
The important part here is the “multiplier,” which is determined according to the number of months you actually paid contributions.
| Number of Months of Contribution Period Completed | Calculation Number (based on months of contribution) |
|---|---|
| 6 to less than 12 months | 6 |
| 12 to less than 18 months | 12 |
| 18 to less than 24 months | 18 |
| 24 to less than 30 months | 24 |
| 30 to less than 36 months | 30 |
| 36 to less than 42 months | 36 |
| 42 to less than 48 months | 42 |
| 48 to less than 54 months | 48 |
| 54 to less than 60 months | 54 |
| 60 months or more | 60 |
※The longer the enrollment period, the higher the calculation number and thus the larger the payment.
【Example】 Let’s look at the following example.
- Last contribution paid: April 2025 (contribution amount: ¥17,510)
- Enrollment period: 24 months
⇒ ¥17,510 × 1/2 × 24 = ¥210,120
Therefore, the Lump-sum Withdrawal Payment will be ¥210,120.
２－２．Employees’ Pension Insurance
The Lump-sum Withdrawal Payment under the Employees’ Pension Insurance is calculated using the following formula.
Average Standard Remuneration × Payment Rate |
Here, the “Average Standard Remuneration” refers to the average monthly standard remuneration calculated by adding together the “standard monthly remuneration” and the “standard bonus amounts” (the portions of bonuses subject to pension contributions), and then dividing by the number of insured months.
In other words, it is important to accurately grasp the overall income level, which reflects not just the monthly salary but also bonuses.
Payment Rate According to Enrollment Period
| Number of Months of Coverage under Employees’ Pension Insurance | Payment Rate |
|---|---|
| 6 to less than 12 months | 0.5 |
| 12 to less than 18 months | 1.1 |
| 18 to less than 24 months | 1.6 |
| 24 to less than 30 months | 2.2 |
| 30 to less than 36 months | 2.7 |
| 36 to less than 42 months | 3.3 |
| 42 to less than 48 months | 3.8 |
| 48 to less than 54 months | 4.4 |
| 54 to less than 60 months | 4.9 |
| 60 months or more | 5.5 |
※Even if the enrollment period exceeds 60 months (5 years), the maximum payment rate is capped at 5.5.
【Example】Let’s look at the following example.
- Average Standard Remuneration: ¥400,000
- Enrollment period: 24 months
⇒ ¥400,000 × 2.2 = ¥880,000
Therefore, the Lump-sum Withdrawal Payment will be ¥880,000.
３．Required Documents and Application Procedures
To receive the Lump-sum Withdrawal Payment, you must prepare the necessary documents accurately and follow the prescribed application process.If any step is done incorrectly, there is a risk of delays in payment, and in the worst case, you may lose eligibility to receive the payment altogether.
In this section, we will clearly explain the required documents and the step-by-step application procedures.
３－１．Required Documents
When applying for the Lump-sum Withdrawal Payment, the following documents must be prepared. Please check carefully in advance to ensure that nothing is missing.
List of Required Documents
- Application Form for Lump-sum Withdrawal Payment
This can be downloaded from the website of the Japan Pension Service.
Multilingual versions (English, Chinese, Vietnamese, etc.) are available. - Copy of your passport
Pages that show your name, date of birth, nationality, signature, and residence status are required. - Copy of your Certificate of Removal from the Resident Register
This is needed to prove that you no longer reside in Japan. If you submitted a moving-out notification before leaving Japan, this may not be required. - Copy of your Pension Handbook , OR Notification of Basic Pension Number
This is required to confirm your pension contribution record. - Bank account information
Documents showing the details of the account where you wish to receive payment (bank name, branch name, account number, and account holder’s name) are required.
If you request an overseas transfer, you must also provide the SWIFT code.
３－２． Application Process
The application for the Lump-sum Withdrawal Payment is carried out in the following steps. Be sure to check the key points at each stage and complete the procedures carefully. Although it takes some time, if you follow the process properly, you will be able to receive your payment without problems.
※The application must be filed directly with the Japan Pension Service. Japanese embassies and consulates abroad cannot accept applications, so you need to send the documents by post directly to the Japan Pension Service.
- Prepare the required documents
Gather the documents explained above. Double-check that there are no missing or incorrect items. - Obtain and complete the application form
Get the Application Form for the Lump-sum Withdrawal Payment and fill in the required details, such as your name, address, pension coverage period, and bank account information. - Submit the documents
Send the completed application form together with the required documents to the Japan Pension Service. You can submit by post or at the counter.
The mailing address is written on the application form, so make sure to check and send it correctly. - Review by the Japan Pension Service
The review process usually takes about two to three months. - Payment decision and transfer
If your application is approved, the payment will be transferred to your designated bank account around four months after the application.
４．Application Deadline and Important Points
The application deadline is within two years from the day after you leave Japan. If two years pass, you will lose the right to receive the Lump-sum Withdrawal Payment and will no longer be able to apply. Therefore, be sure to start the procedures promptly after returning home. Below are some key points to keep in mind.
Important Points：The Lump-sum Withdrawal Payment
- Eligibility for Old-age Pension
If, at the time of application, you already have 120 months (10 years) or more of pension coverage, you will qualify to receive an old-age pension in the future. In that case, you cannot claim the Lump-sum Withdrawal Payment. - Totalization of Coverage Periods
If you have paid into a pension system in a country that has a social security agreement with Japan, those periods can be combined with your Japanese coverage period. If the totalized coverage reaches 120 months or more, you will not be eligible for the Lump-sum Withdrawal Payment.
※ Please be especially careful if you have stayed or worked in the following countries (as of March 2025):
Germany, United States, Belgium, France, Canada, Australia, Netherlands, Czech Republic,
Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia,
Finland, Sweden. - In case the applicant dies
If the applicant passes away, certain relatives can receive the Lump-sum Withdrawal Payment only if the applicant had submitted the application before death.
※ Eligible relatives include:
spouse, children, parents, grandchildren, grandparents, siblings,
and other relatives within the third degree of kinship. - Checking the latest information
The Lump-sum Withdrawal Payment system may be updated due to legal amendments or changes in administrative procedures. Before applying, be sure to check the latest information on the official website of the Japan Pension Service.
In summary, always keep in mind the two-year deadline after leaving Japan, as well as the key conditions explained above. It is best to prepare and apply as early as possible. If you have any uncertainties, contact the Japan Pension Service or consult a certified labor and social security attorney (Shakai Hoken Roumushi).
５．Taxation of the Lump-sum Withdrawal Payment
When receiving the Lump-sum Withdrawal Payment, please note that income tax may be levied on it. In some cases, the actual amount you receive may be less than you expected. Therefore, it is very important to understand the tax rules in advance.
In this section, we will clearly explain the basics of taxation on the Lump-sum Withdrawal Payment and the procedures for reclaiming tax (tax refund).
５－１．Taxable Amount and Rates
- Taxable portion
Only the portion of the Lump-sum Withdrawal Payment relating to Employees’ Pension Insurance is subject to income tax.
If you were enrolled only in the National Pension, your Lump-sum Withdrawal Payment is not taxable. - Tax rate
For those who have left Japan and are classified as “non-residents,” a withholding income tax of 20.42% will be deducted from the Lump-sum Withdrawal Payment relating to Employees’ Pension Insurance. The full amount will not be transferred to your account, so you need to understand the correct net amount you will receive.
Procedures for Claiming a Tax Refund
With regard to the income tax withheld, you may be able to reclaim it by following certain procedures.
- Submit a “Tax Return for Refund of Income Tax on Retirement Income at the Taxpayer’s Option.”
Submission must be made to the tax office that had jurisdiction over your final address or place of residence in Japan. - Appointment and notification of a tax agent in Japan.
You need to submit a “Notification of Tax Agent for Income Tax and Consumption Tax.” The tax agent must be a person residing in Japan, but there are no special qualification requirements. - (In some cases) Filing a final tax return.
Even if you leave Japan in the middle of the year, you may be able to reclaim income tax by filing a final tax return in Japan.
５－２．Necessary Tax Procedures
The income tax withheld from the Employees’ Pension Insurance portion can be refunded if you submit the “Tax Return for Refund of Income Tax on Retirement Income at the Taxpayer’s Option” to the tax office.
The tax office responsible is the one that had jurisdiction over your last registered address or place of residence in Japan.
In order to file the refund claim and receive the refund, you must also submit a “Notification of Tax Agent for Income Tax and Consumption Tax.” The tax agent only needs to reside in Japan, and no special qualifications are required.
Additionally, even if you leave Japan in the middle of the year, you may still be eligible for a tax refund by filing a final tax return.
６．Conclusion
In this column, we have explained the system of the Lump-sum Withdrawal Payment.
By using this system, the pension contributions you made while working in Japan will not go to waste. With proper preparation and by following the application procedures smoothly, you can be sure to receive the payment.
We hope this allows you to start your life after returning home with greater peace of mind.
If you need further support, our office, Daiichi Sogo Labor and Social Security Attorney Corporation, is available for consultation. Please feel free to contact us anytime.
この記事の監修者
社会保険労務士法人第一綜合事務所
社会保険労務士 菅澤 賛
- 全国社会保険労務士会連合会（登録番号13250145）
- 東京都社会保険労務士会（登録番号1332119）
東京オフィス所属。これまで800社以上の中小企業に対し、業種・規模を問わず労務相談や助成金相談の実績がある。就業規則、賃金設計、固定残業制度の導入支援など幅広く支援し、企業の実務に即したアドバイスを信念とする。
