Calculating the amount you pay into the Japanese pension scheme while working in Japan — and what you will be entitled to receive — can be tricky, but not impossible.
In part two of our “Understanding the Japanese Pension System” guide, we will cut through all the jargon and intimidating math to clearly show how the pension plan will affect you and your monthly take home pay.
Pension contribution amounts
People who come from overseas to live and work in Japan follow all sorts of career paths. Some see them working for just a couple years or more, others see them leaving and returning while still others see people settling in the country to make their homes and raise families.
Due to the vagaries of employment and its incumbent social insurance benefits, it can be hard to separate the wheat from the chaff, so to speak, and figure out exactly how much you should be paying into the Japanese pension system.
We’ve managed to break it down into four example situations — one of which should apply to almost anyone working here — followed by some easy-to-understand explanations of how the sums are worked out where applicable.
Example 1: If you contribute to the national pension plan for less than three years.
A person who is self-employed, works part-time or full-time at a company that is not insurance applicable with less than five employees and only pays into the kokumin nenkin (国民年金), or national pension, as explained in part one of this series.
You will pay…
¥16,340 per month toward your pension, like everybody else who pays into the national pension.
You can receive…
A lump sum payment of everything you paid into the system for the past three years (you cannot reclaim any payments totaling more than three years) or have credit for your pension contributions paid in Japan added to the record of the national pension in your home country if that country has an agreement with Japan (list of the 14 eligible nations here).
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