Social Insurance and Pension Guide for Foreign Professionals - Including Lump-Sum Withdrawal Payments

2026.06.22

  • Career Advice
外国籍人材の社会保険・年金制度ガイド――帰国時の脱退一時金も解説

'My insurance premiums are deducted every month - will I lose it all if I leave Japan?' This is one of the most common questions foreign professionals ask.

The answer is 'No, you will not lose it'. The lump-sum withdrawal payment system refunds a portion of your pension contributions when you leave Japan. From April 2026, the cap increases from 5 years to 8 years - a significant benefit for long-term residents.

This article covers the complete social insurance system and exactly how much you can get back when you leave.

Japan social insurance: 4 pillars


 

1. Health Insurance

Reduces your medical costs to just 30% self-pay.
- Hospital visits, surgeries, and hospitalization all covered
- High-cost medical care system caps monthly expenses
- Dependents (spouse, children) can join
- Premium: approx 5% of salary (split with employer)

2. Employee Pension

Provides retirement income.
- Premium: approx 9.15% of salary (split with employer)
- 10+ years of enrollment qualifies you for old-age pension
- Under 10 years and leaving? Get a lump-sum withdrawal refund
- Social security agreement countries (24) can aggregate periods

3. Employment Insurance

Provides unemployment benefits.
- Premium: approx 0.6% of salary
- Register at Hello Work after resignation for unemployment pay
- Also covers childcare and nursing care leave benefits
- Foreign workers receive identical benefits to Japanese workers

4. Workers Compensation

Full coverage for work injuries and commuting accidents. Zero self-pay.
- 100% employer-funded (no worker contribution)
- Applies to all workers regardless of nationality
- Companies that discourage claims are breaking the law

Lump-sum withdrawal: Getting your pension contributions back


The lump-sum withdrawal payment refunds a portion of pension premiums to foreign nationals who leave Japan after 6+ months of enrollment.

Eligibility:
- Non-Japanese national
- No longer residing in Japan (departure notice filed)
- 6+ months of pension enrollment
- Do not qualify for old-age pension (under 10 years)
- Must request within 2 years of leaving Japan
April 2026 reform:
Cap increases from 5 years (60 months) to 8 years (96 months).
- Significantly higher refunds for long-term residents
- Designed to cover trainees (3yr) + SSW1 (5yr) = 8 years total
- White-collar professionals with 5+ years also benefit greatly
Estimated refund amounts (Employee Pension):
Rough formula: Annual income x years x 9%
- 4M yen x 3yr = approx 1.08M yen (pre-tax)
- 6M yen x 5yr = approx 2.7M yen (pre-tax)
- 8M yen x 8yr = approx 5.76M yen (pre-tax, from Apr 2026)

Note: 20.42% withholding tax applies to pension refunds. Tax refund procedures are available in most cases.

How to claim the lump-sum withdrawal


 

Several preparations must be done before leaving Japan.

Before leaving Japan:
- File departure notice (tenshutsu-todoke) at your local ward office
- Confirm your Basic Pension Number (pension book or Nenkin Net)
- Prepare bank account info (international transfer capable)
- Appoint a tax representative (nozei-kanrinin) for pension tax refund
After leaving Japan:
- Submit 'Lump-Sum Withdrawal Request' to Japan Pension Service
- Attachments: passport copy, removal certificate, bank proof, pension number
- Payment in approximately 4 months
- For pension tax refund, file a separate 'retirement income elective taxation' return
Critical warning:
- For social security agreement countries (24): claiming the lump-sum resets your enrollment period
- If you may return to Japan or want to aggregate periods for future pension, NOT claiming may be better
- Consult a pension office or social insurance specialist if unsure

Social security agreements: Preventing double payments


Japan has social security agreements with 24 countries as of 2026.

Two key functions:
- Prevent double contribution: Avoid paying into both your home country and Japan systems
- Period aggregation: Combine Japan and home country enrollment to qualify for pension benefits
Agreement countries (24 as of 2026):
Germany, UK, South Korea, USA, Belgium, France, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia, China, Finland, Sweden, Italy, Vietnam

If your country is listed, consider period aggregation before claiming the lump-sum. Aggregation may result in higher lifetime pension benefits.

Social insurance and permanent residency


If you are planning to stay long-term and pursue PR, proper social insurance payment is one of the most critical screening factors (see Article 16).

PR and insurance:
- Even 1 day of late payment can be fatal to your PR application
- PR revocation system (2027) targets deliberate non-payment even after PR is granted
- Payroll deduction (special collection) eliminates late payment risk
- Self-payment of National Pension/Health Insurance requires extreme care
Strategies:
- Choose a company with payroll deduction (standard for full-time employees)
- If between jobs, immediately enroll in National Pension and National Health Insurance
- Check your records regularly on Nenkin Net

Summary: Insurance protects you - it is not just a deduction


Health Insurance30% self-pay. High-cost cap system
Employee PensionRetirement income. Lump-sum refund on departure (8yr cap from Apr 2026)
Employment InsuranceUnemployment and childcare benefits
Lump-Sum WithdrawalRequest within 2 years. 20.42% tax on pension (refundable)
Agreements24 countries. Double payment prevention + period aggregation

Social insurance is your right as a worker in Japan. Your monthly premiums protect you against illness, unemployment, and old age - and a portion comes back when you leave. Do not ignore your enrollment status.

 

Looking for a job with proper insurance coverage?

United World Inc. specializes in career support for foreign white-collar professionals.

United World support includes:
- Only recommend companies with full social insurance
- Lump-sum withdrawal information and guidance
- PR-focused insurance and tax advice
- Success-fee model - zero cost for job seekers

▶ Contact United World Inc. here

▶ Services for hiring companies

 

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