National Pension and Employees’ Pension are separate schemes with different contribution and lump-sum payment calculations. A person may have records in one or both, but the periods are not simply added together to test the scheme-specific minimum. Identify the applicable records first; mixed or uncertain histories need an official record review rather than an estimate.
National Pension and Employees’ Pension at a glance
On a small screen, scroll the table horizontally to view all columns.
| Check | National Pension | Employees’ Pension Insurance |
|---|---|---|
| Typical coverage | Usually Category 1 insured persons, such as self-employed people, students, or people not covered through an employer; voluntary insured periods may also be relevant. | Employees who meet the coverage conditions at an applicable workplace. These employees also participate in the National Pension framework for the basic pension. |
| Period used for lump-sum calculation | Specified contribution-paid and weighted partial-exemption periods as a Category 1 or voluntary insured person. | Employees’ Pension Insurance insured periods, including specified related employee-pension periods where the official rules provide. |
| Six-month check | The weighted National Pension total must independently reach six months. | The relevant Employees’ Pension Insurance period must independently reach six months. |
| Payment amount basis | The contribution amount for the fiscal year containing the last paid month, multiplied under the official period-based formula. | Average standard remuneration and a payment rate based on the insurance rate and insured-period band. |
| 36/60-month calculation cap | Based on the last month for which contributions were paid. | Based on the final covered month. |
| Withholding at payment | No income tax is withheld from the National Pension lump-sum withdrawal payment. | For a non-resident, 20.42% income tax is withheld; a separate refund filing may be available. |
| Records to check | Category 1 or voluntary coverage, paid months, partial exemptions, unpaid months, and the last paid month. | Covered months, standard monthly remuneration, standard bonuses, and the final covered month. |
Which scheme appears in your records?
Question 2 of the Checker asks which pension scheme or schemes may apply. The result is preliminary and does not replace official records.
Start the preliminary eligibility check →How the two schemes fit together
Japan’s public pension system has a two-level structure. National Pension provides the basic-pension framework, while Employees’ Pension Insurance adds employment-based coverage for eligible company employees and public servants. An Employees’ Pension Insurance member is therefore not completely outside National Pension; company employees participate in both levels for old-age pension purposes.
That system-wide relationship does not mean the two lump-sum withdrawal calculations are pooled. The National Pension payment and Employees’ Pension Insurance payment use different eligible periods, minimum-period checks, and amount formulas.
National Pension lump-sum calculation
For a National Pension lump-sum withdrawal payment, the relevant period is not every month lived in Japan or every month that may count toward a future basic pension. The official calculation uses specified periods as a Category 1 insured person, including voluntary insured periods where applicable, through the month before the claim.
The minimum-period total includes contribution-paid months and weighted portions of certain partial-exemption months. Unpaid months are not treated as contribution-paid months. The official amount formula uses the contribution amount for the fiscal year containing the last paid month, one half, and the prescribed payment-calculation number for the period band.
The calculation cap depends on the last month for which contributions were paid. A last paid month in March 2021 or earlier may use the older 36-month cap; April 2021 or later uses the 60-month cap. See the 6, 60 and 120 month guide for the month-rule distinction.
How Employees’ Pension contributions are calculated
If you were employed in Japan, part of your salary was generally deducted for Employees’ Pension Insurance (Kōsei Nenkin). This is social insurance, not an individual savings account.
The contribution amount depends on remuneration:
- The higher your monthly salary, the higher your pension contribution
- Contributions are based on standardized salary brackets
- Your employer pays roughly half of the contribution
Why Your Monthly Deduction Changes
Your pension deduction is not fixed forever.
- Your salary level is reviewed periodically
- If your salary increases or decreases, your contribution changes
- This adjustment ensures contributions reflect your income
Bonus Payments Are Also Included
Pension contributions are not limited to monthly salary.
- Bonuses are also subject to pension deductions
- This can significantly increase total contributions
What the Pension Actually Covers
Employees’ Pension Insurance is not just for retirement.
- Old-age pension (retirement income)
- Disability pension
- Survivor benefits for family members
Old-age, disability, and survivor benefits have their own official conditions. A lump-sum withdrawal decision should not assume that every future benefit question has the same rule.
Employees’ Pension lump-sum calculation
The Employees’ Pension Insurance lump-sum amount is calculated from the average standard remuneration for the insured period and a payment rate. Standard monthly remuneration and standard bonus amounts can affect the average, while the insurance rate and insured-period band affect the payment rate.
This is not a simple return of every contribution paid by the employee or employer. The calculation cap depends on the final covered month: March 2021 or earlier may use the older 36-month cap, while April 2021 or later uses the 60-month cap.
If you have periods under both schemes
Having both National Pension and Employees’ Pension Insurance periods does not by itself prevent a claim or place a case outside PenPos’s review scope. Each scheme’s period, six-month check, and payment amount must be reviewed separately.
National Pension 4 months + Employees’ Pension Insurance 4 months does not become one combined 8-month period for the six-month payment requirement. The Japan Pension Service states that the two scheme periods are not combined for this test and that each payment is calculated from its own scheme period.
This is different from the officially confirmed 120-month qualifying period for old-age pension rights, where National Pension, Employees’ Pension Insurance, complementary periods, and applicable agreement totalization may matter. Do not use the 120-month analysis to pool the scheme-specific six-month test.
Tax withholding difference
When a non-resident receives an Employees’ Pension Insurance lump-sum withdrawal payment, 20.42% income tax is withheld at payment. A refund may be available through a separate filing. A National Pension lump-sum withdrawal payment is not subject to this withholding at payment.
For the separate filing process and its limitations, read how the tax refund works after an Employees’ Pension Insurance payment. The refund is not automatic and is not guaranteed.
Which records should I check?
- Pension number and official coverage record: identify every scheme and period before estimating eligibility.
- National Pension record: distinguish Category 1 or voluntary periods, paid months, partial exemptions, unpaid months, and the last paid month.
- Employees’ Pension Insurance record: confirm covered months, standard monthly remuneration, standard bonuses, and the final covered month.
- Qualifying-period record: separately confirm any complementary or totalized periods relevant to the 120-month question.
The claim document guide explains the records and supporting information commonly needed. The broad eligibility guide covers the other payment conditions.
When can you receive pension benefits?
Old-age pension qualification is a separate question from a lump-sum payment’s six-month check. The official qualifying period can include different Japanese pension periods and, depending on the facts, complementary or totalized periods. An approximate work history is not the official qualifying-period record.
If the Japan Pension Service confirms a qualifying period of at least 120 months at the time of claim, the lump-sum withdrawal payment cannot be claimed. Review this before deciding that a short or mixed record automatically qualifies.
Common misunderstandings
- Adding the two schemes to reach six months. The scheme-specific minimum periods are checked separately.
- Assuming both payment formulas are the same. National Pension and Employees’ Pension Insurance use different amount bases.
- Calling the Employees’ Pension payment a full contribution refund. It uses an official remuneration-and-rate formula.
- Applying 20.42% withholding to National Pension. The withholding distinction applies to the Employees’ Pension Insurance payment.
- Assuming mixed records prevent a claim. Records under both schemes require separate review; they are not automatically excluded.
- Confusing 60 and 120 months. Sixty months concerns a payment-calculation cap; 120 months concerns the qualifying period for old-age pension rights.
What happens if you do not qualify for a future pension?
Contributions are not automatically returned when you leave Japan. If you meet the separate official conditions, you may be able to claim a lump-sum withdrawal payment. If you receive it, all Japanese pension coverage periods before the claim will no longer count toward future Japanese pension eligibility, benefit calculations, or totalization. Record review therefore matters before choosing a one-time payment.
Need a record-based review?
If your scheme, official periods, or qualifying-period record is unclear, PenPos can review whether your situation is within its service scope. Review, acceptance, eligibility, and payment are not guaranteed.
Ask PenPos to review your case →Official information
Use current official information and your own pension records for any decision:
- How National Pension and Employees’ Pension Insurance fit together — Japan Pension Service
- Scheme-specific lump-sum withdrawal requirements and calculations — Japan Pension Service
- National Pension payment calculation FAQ — Japan Pension Service
- Employees’ Pension Insurance payment calculation FAQ — Japan Pension Service
- Non-combination and mixed-scheme FAQ — Japan Pension Service
- 36-to-60-month cap FAQ — Japan Pension Service
- Official claim form and instructions (English/Japanese PDF)
- Income tax on Employees’ Pension Insurance lump-sum payments — National Tax Agency
This article provides general information and is not legal, tax, or pension advice. Treatment depends on official records and applicable rules. The Japan Pension Service and relevant tax authority control official decisions. PenPos does not guarantee case review or acceptance, eligibility, payment, or a tax refund.