Those who are working in Japan may already know but in Japan, regardless of nationality, it is mandatory to enroll in the national pension system. If you work for a company in Japan, employee pension is deducted from your monthly salary. This might be acceptable to those who plan to live in Japan for a long time but to those who are planning to leave someday, might think it is unfair to pay even though it is not their home country. In this article, we will discuss the Employees’ Pension Plan and its system in Japan.
What is Employee’s Pension System
To begin with, what is the Employee’s Pension System? It is an insurance system where you receive a certain amount yearly or monthly when you become old, disabled or pass away. When you start working, every month the company pays half and you pay half (deducted from your salary).
Can global workers also receive pension?
With the pension system explained, the next question is, can global workers receive pension? The answer is YES! Those who have been paying for more than 10 years, they will receive the pension money after 65 years old regardless of their nationality. You can also receive pension money in cases of illness or injury. Even if you leave the country after paying for more than 10 years, you can still receive it.
You can also check out the following link to know more about it!
https://www.pfa.or.jp/english/deferred/howto/index.html
Types of Employee’s Pension System
老齢厚生年金 ろうれいこうせいねんきん (Old-age Employees Pension)
As mentioned earlier, those who have paid the Employees’ Pension Insurance or the National Pension Insurance in Japan for more than 10 years can receive the pension money after the age of 65. The following criteria is the qualified period of “more than 10 years”:
・The period during which you have worked for a company in Japan and paid the pension
・The period during which you paid the pension money by yourself
・Period of exemption from the National Pension Insurance
And other periods may also be counted.
障害厚生年金 しょうがいこうせいねんきん (Disability Pension)
Disability Pension is received when the worker is unable to work due to sickness or injury. You must be enrolled in the pension system and the amount received depends on the condition of the person’s health.
遺族厚生年金 いぞくこうせいねんきん (Survivors' Employees' Pension)
This pension is provided when the worker who is enrolled in the pension system passes away. It is paid to those who depended on the worker for their living, for example the worker’s children. There are priorities for when receiving this pension; it depends on criteria such as age.
You can learn more about it from the link below (It is available in english and other languages!)
https://www.nenkin.go.jp/service/pamphlet/kaigai/konen-kenpo.files/English.pdf
Pension money when you work in Japan for a short time
After working and paying pension money in Japan, what happens to the money when you decide to leave Japan? There is a system called “Lump-sum Withdrawal Payments” or 「脱退一時金」in Japanese. If you are not a Japanese citizen, and have been paying the pension money you can apply for the Lump-sum Withdrawal Payments. Make sure that you are no longer under the three main pension systems and submit the application for the payment within two years from the date on which the applicant leaves Japan.
The following documents are needed to receive the money
・Lump-sum Withdrawal Payment Claim Form
・Passport copy
・Documents which verify the applicant does not have an address in Japan
・Bank account
・Document showing the Basic Pension Number
Summary
We have introduced you to the Employee’s Pension System in Japan. It might feel like you are paying a lot of money every month, this is a system which allows you to receive support when something happens to you or when you get older. If you pay for 10 years, you can receive the pension regardless of the nationality. You can also receive it from abroad! Furthermore, even if you leave the country in less than 10 years, a portion of the money will be returned through the Lump-sum Withdrawal Payment System. Therefore it is important to understand the system and utilize the system to the maximum.
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