Employees’ Pension [The pension systems in Japan]

 This page explains about the second type of pension you may be enrolled in (you are required to be part of one pension or the other). 

Employees’ Pension (kousei nenkin, 厚生年金)

The Employees' pension is mainly for those who are employed by private business corporations. Contributors to the employees' pension are entitled to future pension payments and also to the use of various welfare facilities.

  When you are enrolled in the employees' pension at work, you are also automatically enrolled in the national pension; you are paying extra premiums in addition to the national pension premiums. Therefore, those paying the employees' pension premiums will receive more pension payments in the future.

  Like the national pension, non-Japanese nationals who are enrolled in the employees' pension for a certain period of time are eligible for the lump-sum withdrawal payment when they permanently leave Japan.

Enrollment/Payment of premiums

 When you are employed by a business corporation, you are automatically enrolled in the employees' pension scheme. The premiums are generally deducted from your salary.
 If you become unemployed, you are required to report it to the pension section of the municipal office in the ward (or city, town or village) where you reside.

Receiving a refund (when leaving the country)

 Please visit the Japan Pension Service’s websiteOutsideLink to learn more about the details of Employees’ Pension, and about applying for a refund when you decide to leave Japan. It has detailed instructions on how to apply. Remember that your “lump-sum” will be subject to a 20% income tax. You have to file a separate form to exempt yourself from that tax.

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