The Public Pension System is a social insurance system to support senior citizens, disabled people, and the families of deceased. The public pension system consists of the National Pension Plan and the Employee’s Pension Insurance Plan.
All persons residing in Japan between the ages of 20 and 59 including foreigners must enter the
National Pension Plan.
If you have entered into the Employees' Pension Insurance Plan at your company, you are also entered
into the National Pension Plan at the same time.
The premium is same for all subscribers regardless of income and is 16,490 yen per month as of FY2017.
Payment notifications sent from the Japan Pension Service once every April can be paid at the counter
of a designated financial institution, post office or convenience store, or by automatic bank transfer.
Students can take advantage of the Special Student Payment System, which allows them to defer the payment
of insurance premiums. Please check the website below for the schools eligible for the Special Payment
System for Students.
Japan Pension Service official website: https://www.nenkin.go.jp/service/kokunen/menjo/gakutokutaisyouko.html
The Employees' Pension Insurance Plan is a pension system into which companies’ employees enter, and
which provides benefits “proportional to remuneration” on top of the basic pension of the National
Pension Plan. Foreigners are also eligible to join the employee’s pension insurance and must enter
the system. Part-time employees are also required to join the system if their prescribed weekly working
hours and prescribed monthly working days are three quarters or more of those of full-time employees.
The insurance premiums are paid 50% by the employer and 50% by the worker, but the amount varies depending
on the monthly salary and bonus of the worker. Payment of premiums is made through the employer.
Foreign residents who have contributed to the Employees' Pension Insurance and the National Pension Plan for a total of six months or more may claim the Lump-sum Withdrawal Payment system within two years of leaving Japan in accordance with the prescribed procedures. However, the payment amount may be less than half of the amount of contribution that you pay, and the amount depends on how long you paid the contribution. From August 2017 onwards, if you have 10 years or more of valid coverage periods and are entitled to receive the old-age basic pension, you cannot apply for the lump-sum withdrawal payment. (Even if you return to your country, you can still receive the pension in the future.) If you receive the lump-sum withdrawal payment, your coverage periods become invalid.
National Health Insurance is compulsory for all foreigners who stay in Japan for more than three months.
Enrollment is done at the municipal office of the city or ward where you live. You will need your residence
card and passport.
The annual insurance fee is about 40,000 yen. The premium varies greatly depending on the municipality
you live in and your income.
Remember to consult with the municipal office of the city or ward where you live.
When receiving medical treatment, presenting your insurance card will reduce your medical expenses to 30%
of the total cost. The rest will be borne by the National Health Insurance. However, medical expenses
that are not covered by insurance are fully paid by the patient.
There is also a system where the amount of medical expenses that exceed the co-payment limit can be
reimbursed later as high-cost medical care expenses when the monthly medical expenses become too
expensive. Also, when you are hospitalized, you can apply for and obtain a certificate to apply for
the maximum amount of medical expenses in advance, which will allow you to pay the maximum amount at
the hospital counter.
Industrial Accident Compensation Insurance is a system that provides necessary insurance benefits for workers and their bereaved families in the event of injury, illness, disability, or death of a worker due to work-related reasons or commuting.
All workers are obligated to join the system, so even international students working part-time are required to join. However, the insurance premiums are paid entirely by the company, so it is not necessary for international students themselves to pay.
