Every foreigner who has paid into Japan’s National Pension (国民年金) or Employee Pension Insurance (厚生年金) can claim a lump-sum withdrawal payment when they permanently leave Japan. Most people don’t know this exists, or miss the 2-year deadline.
What Is the Lump-Sum Withdrawal?
The 脱退一時金 (datsuretai ichijikin) is a refund of a portion of your pension contributions. It’s available to foreigners who:
- Are not Japanese nationals
- Have paid pension contributions for at least 6 months
- Have left Japan and are no longer registered as a Japanese resident
- Apply within 2 years of leaving Japan
- Have no entitlement to a Japanese pension benefit
How Much Will You Get?
The amount depends on how long you contributed and your income level, but is capped at a maximum of 36 months (3 years) of contributions.
Important: Even if you paid for 10 years, you only get a refund equivalent to 3 years. This is the main disadvantage of the system.
Approximate amounts (Employee Pension):
| Monthly Salary | 6 months | 12 months | 24 months | 36 months (max) |
|---|---|---|---|---|
| ¥200,000 | ¥54,000 | ¥108,000 | ¥216,000 | ¥324,000 |
| ¥350,000 | ¥94,500 | ¥189,000 | ¥378,000 | ¥567,000 |
| ¥500,000 | ¥135,000 | ¥270,000 | ¥540,000 | ¥810,000 |
Approximate figures. Actual amount calculated by Japan Pension Service.
Tax withholding: 20.42% is withheld at source. However, you may be able to appoint a tax agent in Japan to file a return and reclaim most of this, depending on the Japan-source tax treaty with your home country.
The 2-Year Deadline
You must apply within 2 years of the date you left Japan (specifically, the date your residence registration was cancelled).
This is an absolute deadline — missing it means you lose the refund permanently.
If you’re planning to leave Japan, note your departure date and set a reminder.
How to Apply
The application must be submitted from outside Japan to the Japan Pension Service (日本年金機構).
Step 1: Leave Japan
Cancel your residence registration (住民票を抜く) at your local municipal office before departing.
Step 2: Prepare Documents
- Application form (脱退一時金請求書) — download from Japan Pension Service website
- Passport copies (all pages with stamps showing entry/exit from Japan)
- Pension book (年金手帳) or Basic Pension Number notification
- Bank account information outside Japan (must be in your home country)
Step 3: Mail or Submit Online
Submit to: Japan Pension Service (International Affairs Department) 3-5-24 Takaido-Nishi, Suginami-ku, Tokyo 168-8505
Or submit online via the Japan Pension Service e-Service portal (available in English).
Step 4: Wait
Processing time: 3–6 months after receipt of application.
Payment is sent via international wire to your overseas bank account.
What About Social Insurance (厚生年金)?
If you were an employee and had 厚生年金 (Employee Pension Insurance) deducted from your salary — this is the same system. Your employer’s contributions are NOT included in the lump-sum refund, only your own half of the contributions (and only up to 36 months).
Tax Refund (還付) on the Withholding
The 20.42% tax withheld can partially be recovered if:
- You appoint a tax representative (税務代理人) in Japan before leaving
- They file a final tax return on your behalf after you receive the lump sum
Many tax advisors offer this service. Whether it’s worth the cost depends on how much was withheld.
Totalization Agreements
Japan has pension totalization agreements with some countries (USA, Germany, South Korea, UK, Australia, etc.). These allow pension contribution periods in both countries to be combined for eligibility purposes.
If your home country has a totalization agreement with Japan and you’ve contributed for 10+ years in Japan, you may qualify for an actual pension rather than a lump-sum refund. Check with Japan Pension Service or your home country’s social security authority.