Pension Lump-Sum Withdrawal in Japan: 5-Year Cap Explained (2026)
If you are not a Japanese national and you leave Japan before qualifying for a Japanese pension, you can usually claim a Lump-sum Withdrawal Payment (dattai ichijikin) for the pension contributions you paid. As of October 2026, the payment counts up to 60 months (5 years) of contributions. A 2025 law will raise this to 8 years, but that change is planned, not yet in force.
This guide explains who can claim, how the amount is calculated, when and how to apply, the tax on the payment, and the important trade-off: once you take the payment, those years no longer count toward a Japanese pension. Facts are based on the Japan Pension Service (JPS) and the Ministry of Health, Labour and Welfare (MHLW).
If you work in Japan as an employee, you pay into Employees' Pension Insurance through your payslip. Your nationality does not matter. The lump-sum withdrawal is how many foreign workers get part of this money back when they leave.
Key takeaways
You can claim if you are not Japanese, paid in for 6 months or more, have no address in Japan, and do not meet the 10-year pension qualification period.
The calculation cap is currently 60 months (5 years). The 8-year cap is planned; the start date has not been set.
You must claim within 2 years after you no longer have an address in Japan.
20.42% income tax is withheld from the Employees' Pension payment, but you may be able to get it refunded.
Taking the payment erases all your Japanese pension periods. Check social security agreements (including with India) first.
What is the pension lump-sum withdrawal payment?
It is a one-time payment from Japan's public pension system to foreign nationals who leave Japan after a short period of coverage. Japan's old-age pension normally needs at least 10 years (120 months) of qualifying periods. People who leave earlier would get nothing back, so the lump-sum withdrawal returns part of what they paid.
There are two types:
Employees' Pension Insurance (kosei nenkin) — for people who worked as employees. Most engineers are in this group.
National Pension (kokumin nenkin) — for people who paid National Pension themselves, for example while self-employed, as a student, or between jobs.
You can claim for both if you paid into both.
Who is eligible to claim?
You are eligible if you meet all the conditions listed by the Japan Pension Service. For Employees' Pension:
Condition | Detail |
|---|---|
Nationality | You do not have Japanese nationality |
Insurance status | You are no longer insured under Employees' Pension or National Pension |
Contribution period | Total Employees' Pension coverage of 6 months or more |
Pension qualification | You do not meet the 10-year qualification period for an old-age pension |
Disability pension | You have never had the right to a disability pension (including a disability allowance) |
Address | You have no address in Japan |
Deadline | Not more than 2 years have passed since you lost your insured status (or, if you were still living in Japan then, since you lost your address in Japan) |
The re-entry permit trap
If you leave Japan with a re-entry permit (or special re-entry permit) and without filing a moving-out notification at your city office, you are treated as still insured in National Pension until the permit expires. In that case, you cannot claim until it expires. If you file the moving-out notification, you can claim even when leaving with a re-entry permit.
Is the cap 5 years or 8 years?
As of October 2026, the cap is 5 years (60 months). The Japan Pension Service's page (updated 1 April 2026) states that if your last contribution month is April 2021 or later, the calculation uses up to 60 months. If all your periods ended in March 2021 or earlier, the old cap of 36 months (3 years) applies.
The planned 8-year change
A pension reform law passed in June 2025 (promulgated 20 June 2025) includes two changes:
Raise the cap from 5 years to 8 years.
Stop payment while a re-entry permit is still valid for people who left Japan with one.
The law says these start on a date set by Cabinet Order within 4 years of promulgation. As of October 2026, no start date has been set, and the Japan Pension Service still uses 60 months. Do not plan on 8 years until JPS announces it. See MHLW's summary of the reform (in Japanese).
What if you paid in for more than 5 years?
You still receive a maximum of 60 months' worth. But all your periods are erased, not only 60 months. For example, if you paid for 90 months and claim, you get 60 months' worth and lose all 90 months.
How is the amount calculated?
For Employees' Pension, the amount is your average standard remuneration multiplied by a payment rate based on how many months you paid.
Amount = average standard remuneration × payment rate
Average standard remuneration = (your standard monthly remuneration for each month + your standard bonus amounts, from April 2003) ÷ total months of coverage.
Payment rate = pension contribution rate × ½ × the "number used for calculation" in the table below. With the current 18.3% rate, the payment rates are:
Months of coverage | Number used | Payment rate |
|---|---|---|
6 to 11 | 6 | 0.5 |
12 to 17 | 12 | 1.1 |
18 to 23 | 18 | 1.6 |
24 to 29 | 24 | 2.2 |
30 to 35 | 30 | 2.7 |
36 to 41 | 36 | 3.3 |
42 to 47 | 42 | 3.8 |
48 to 53 | 48 | 4.4 |
54 to 59 | 54 | 4.9 |
60 or more | 60 | 5.5 |
Source: Japan Pension Service (for last month in April 2021 or later).
A simple example
If your average standard remuneration (including bonuses spread over the months) is ¥400,000 and you paid for 60 months or more, the gross amount is ¥400,000 × 5.5 = ¥2,200,000. Income tax of 20.42% is then withheld (see below). This is an illustration only; your real figure depends on your record.
National Pension amounts (FY2026)
For National Pension, the amount is fixed by the premium in the fiscal year of your last payment. If your last payment was between April 2026 and March 2027, JPS lists ¥53,760 for 6–11 months, rising by ¥53,760 for each 6-month step, up to ¥537,600 for 60 months or more.
How and when do you apply?
You apply to the Japan Pension Service by post or online, and the claim must be received at a time when you no longer have an address in Japan. You have 2 years from the date you no longer have an address in Japan.
Timing
You can submit the claim before leaving Japan, but only on or after the date your moving-out (or planned moving-out) is registered at your city office. JPS must receive it after that date.
If you post it, make sure it arrives after that date.
You can also send it from your home country after you leave.
Documents
Document | Notes |
|---|---|
Lump-sum Withdrawal Payment Claim Form | Available in 14 languages with Japanese |
Copy of passport | Pages showing name, date of birth, nationality, signature and status of residence |
Proof you have no address in Japan | Not needed if you filed the moving-out notification before leaving |
Bank account details | Document showing bank name, branch, address, account number and that the account is in your name |
Basic Pension Number document | Basic Pension Number Notice or pension handbook |
JPS notes that Japan Post Bank (Yucho) and some online-only banks cannot receive the payment. If you use a Japanese bank, the account name must be registered in katakana. Forms and instructions are on the JPS English page.
Is the lump-sum withdrawal taxed?
Yes, for Employees' Pension. JPS states that 20.42% income tax is withheld from the Employees' Pension lump-sum withdrawal paid to non-residents. National Pension lump-sum payments are not taxed this way.
Getting the tax back
You may be able to get the withheld tax refunded by filing a special return with the tax office (a return for refund under the elective taxation of retirement income). To do this:
Before leaving Japan, file a tax agent (nozei kanrinin) notification at the tax office for your last address in Japan. The agent can be any person with an address in Japan.
When the payment is made, JPS sends you a payment decision notice. Send the original to your tax agent.
Your tax agent files the refund return for you.
If you did not file the tax agent notification before leaving, it can be submitted together with the return. Many people forget this step and lose money, so plan it before departure.
What do you give up when you claim?
You give up your Japanese pension periods. After you receive the lump-sum withdrawal, all periods before the claim are treated as if you were never insured. They cannot count toward a future Japanese pension or be combined with another country's pension.
Social security agreements
Japan has social security agreements with several countries that allow pension periods to be combined (totalized). As of March 2026, JPS lists: Germany, the United States, Belgium, France, Canada, Australia, the Netherlands, the Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, the Philippines, Slovakia, Finland, Sweden and Austria.
If you are from one of these countries, your Japanese periods might help you qualify for a pension in your home country, or the combined periods might help you qualify for a Japanese pension. Once you take the lump-sum, this is no longer possible for those periods. Ask the Japan Pension Service or your home country's pension office before you decide.
Situation | Things to think about |
|---|---|
You will not return to Japan | Lump-sum is often the practical choice, but check your agreement country first |
You may return to work in Japan | Claiming erases periods; future periods start from zero |
You have 10 years or more of qualifying periods | You cannot claim; you can receive a Japanese pension in future |
Can you claim more than once?
Yes, in some cases. JPS explains that people who stay in Japan several times, with a total of more than 60 months, may need to claim after each stay to receive payments that reflect each period. For example, someone who leaves after one stay and later returns under another status can claim after each departure. Each claim erases the periods it covers.
How AGG can help
AGG (Awaji Global Gateway, a division of Fukuyoshi Inc.) lists English-OK engineering jobs in Japan. Many are dispatch (haken) roles where you are employed by Fukuyoshi Inc. and enrolled in social insurance, including Employees' Pension, while you work. If you are deciding whether to stay in Japan or leave, we can talk through your job options first. There are no agency fees for job seekers.
Frequently asked questions
Q. How many years does the Japan pension lump-sum withdrawal cover in 2026?
As of October 2026, the calculation covers up to 60 months (5 years) if your last contribution month is April 2021 or later. A law passed in June 2025 will raise the cap to 8 years, but the start date will be set by Cabinet Order and had not been set as of October 2026. Until the Japan Pension Service announces it, use 5 years for planning.
Q. How do I calculate my pension lump-sum withdrawal amount in Japan?
For Employees' Pension, multiply your average standard remuneration by the payment rate. The payment rate depends on your months of coverage: 0.5 for 6–11 months, rising in steps to 5.5 for 60 months or more (at the current 18.3% contribution rate). For example, an average of ¥400,000 with 60+ months gives ¥2,200,000 before 20.42% tax withholding. Your pension record on Nenkin Net shows your real figures.
Q. Can I apply for the pension lump-sum before leaving Japan?
Yes. You can submit the claim before departure, but the Japan Pension Service must receive it on or after the date your moving-out is registered at your city office. If you post it, make sure it arrives after that date. If you do not file a moving-out notification, you will need other proof that you no longer have an address in Japan.
Q. What is the deadline to claim the Japanese pension lump-sum withdrawal?
You must claim within 2 years after you no longer have an address in Japan. If you miss the deadline, you cannot claim. If you have a re-entry permit and did not file a moving-out notification, you are still treated as insured in National Pension until the permit expires, and you cannot claim during that time. Filing the moving-out notification at your city office before you leave avoids this problem.
Q. Is the Japan pension lump-sum withdrawal taxed?
The Employees' Pension lump-sum has 20.42% income tax withheld for non-residents. National Pension lump-sum is not withheld. You may be able to get the withheld tax refunded by filing a return for refund through a tax agent in Japan. Appoint the tax agent and notify the tax office before you leave, then send the JPS payment notice to your agent.
Q. Should Indian engineers claim the pension lump-sum when leaving Japan?
It depends on your plans. Japan and India have a social security agreement that JPS lists as allowing pension periods to be combined. If you take the lump-sum, your Japanese periods are erased and cannot be combined. If you might return to Japan or want to use the agreement, ask the Japan Pension Service or India's pension authority before claiming.
Q. What happens if I paid Japanese pension for more than 5 years?
Under the current rule, the lump-sum is calculated on a maximum of 60 months. However, all your coverage periods are erased when you claim, not only 60 months. For example, 90 months of coverage gives 60 months' worth of payment and erases all 90 months. If you have 10 years or more of qualifying periods, you cannot claim at all, because you can receive a Japanese old-age pension in the future instead.
Summary
Non-Japanese who leave Japan with 6+ months of contributions and under 10 years of qualifying periods can usually claim.
The cap is 5 years (60 months) as of October 2026; the 8-year cap is planned with no start date yet.
Claim within 2 years; you can submit before leaving once your moving-out date is registered.
20.42% tax is withheld from Employees' Pension payments; appoint a tax agent to seek a refund.
Claiming erases all periods; check social security agreements, including Japan–India, first.
If you plan to keep working in Japan instead, see our open engineering jobs and apply — there are no agency fees. You may also want to read take-home pay in Japan explained and resident tax when changing jobs.
Reviewed by
Naoya Mitani — Head of Business Operations, Awaji Global Gateway (Fukuyoshi Inc.). Supports foreign engineers moving into jobs in Japan, including visa changes and onboarding.
