Japan pension lump-sum withdrawal: how to claim your money back when you leave

The 脱退一時金 is a one-time payment from the Japan Pension Service (日本年金機構, Nihon Nenkin Kikō) that returns a portion of your pension contributions to you when you permanently leave Japan. It exists because Japan's pension system requires 10 years of contributions before you can draw any pension at retirement age — most foreign workers on SSW visas do not stay that long.

The lump sum is not a full refund of everything you paid. It is calculated based on your average monthly remuneration and the number of months you contributed, using a rate table set by the government. But it is real money — typically ¥200,000 to ¥800,000 or more depending on how long you worked and your salary — and it belongs to you.

This payment is separate from any refund of health insurance or other deductions. It applies only to 厚生年金 (the employees' pension you contributed to through your employer). It does not cover 国民年金 (national pension) if you were ever enrolled in that separately.

Vietnam does not currently have a social security agreement with Japan that would transfer your pension credits to a Vietnamese pension account. This means the lump-sum withdrawal is your main option for recovering your contributions.

To qualify for the 脱退一時金, you must meet all of the following conditions at the time you apply: (1) You are not a Japanese national. (2) You have had at least 6 months of contributions to 厚生年金 (the employees' pension). (3) You do not have an address in Japan — you have already left. (4) You have never received any Japanese pension benefit (老齢給付, disability pension, or survivor pension). (5) You are not currently eligible to receive a Japanese pension.

SSW workers who have contributed to 厚生年金 through their employer for 6 months or more and have returned to their home country are almost always eligible. There is a cap: the maximum number of contribution months the payment is calculated on is 60 months (5 years), even if you worked longer.

You must apply after you leave Japan. You cannot submit the application while still residing in Japan. You also must apply within 2 years of leaving Japan — this deadline is strictly enforced and there are no extensions. Missing it means losing the money entirely.

The payment amount is calculated using the formula: 平均標準報酬額 (average standard monthly remuneration) × 支給率 (payment rate). The payment rate depends on how many months you contributed:

6–11 months: rate 0.5 | 12–17 months: rate 1.1 | 18–23 months: rate 1.6 | 24–29 months: rate 2.2 | 30–35 months: rate 2.7 | 36–41 months: rate 3.2 | 42–47 months: rate 3.7 | 48–53 months: rate 4.2 | 54–59 months: rate 4.7 | 60 months or more: rate 5.0 (maximum).

Your 平均標準報酬額 (average standard monthly remuneration) is roughly equal to your gross monthly salary, rounded to a standardized bracket. For a salary of ¥200,000 per month: 12 months of contributions → ¥200,000 × 1.1 = ¥220,000 (gross before tax). 24 months → ¥200,000 × 2.2 = ¥440,000. 36 months → ¥200,000 × 3.2 = ¥640,000. 60 months → ¥200,000 × 5.0 = ¥1,000,000.

A 20% withholding tax is deducted from the payment at source. The Japan Pension Service subtracts this before sending you the money. For the examples above: 24 months at ¥200,000/month → ¥440,000 gross → ¥352,000 net. 60 months → ¥1,000,000 gross → ¥800,000 net.

Note: these rates are subject to occasional government adjustments. Check the Japan Pension Service website or ask a support organization for the current table when you are ready to apply.

When the Japan Pension Service pays the lump sum, they automatically withhold 20.42% as income tax (20% national tax + 0.42% reconstruction tax). This is a legal requirement for non-resident payees.

In principle, if you appoint a tax representative (納税管理人, nōzei kanrinin) in Japan before you leave and file a final tax return (確定申告) as a non-resident, you may be able to reclaim some or all of the withheld tax — because the lump sum may not actually be taxable income under Japan's tax treaties and domestic law, or because it qualifies for favorable treatment.

In practice, this reclaim process is complex and requires someone in Japan to act on your behalf. Most SSW workers do not do it, and the effort may not be cost-effective compared to the amount recovered. The most practical approach is to apply for the lump sum, accept the 80% net payment, and move on. The net amount is still substantial.

If you earned a high salary or worked for many years, the 20% withholding on a large lump sum may be worth the effort to reclaim. Consult a tax professional or legal support organization (see below) if you want to pursue this.

Step 1 — Leave Japan first. You cannot apply while you are still in Japan. Once you return to your home country, you can begin the process.

Step 2 — Gather your documents. You will need: your Basic Pension Number (基礎年金番号, kiso nenkin bangō) — this is on your pension book (年金手帳, nenkin techō) or can be found on any previous correspondence from the Japan Pension Service; a copy of your passport showing your nationality and the entry/exit stamps from Japan; proof that you no longer have an address in Japan (your departure record is usually sufficient); a bank account statement or certificate from your bank showing account name, account number, and bank branch details — this must be an account you can receive an international wire transfer to.

Step 3 — Complete the application form. The form is called 脱退一時金請求書 (dattai ichijikin seikyūsho). You can download it from the Japan Pension Service website (nenkin.go.jp) — search for 脱退一時金. The form is in Japanese. Your sending organization, a Japanese language-capable support contact, or a local organization that assists Japanese returnees may be able to help you complete it.

Step 4 — Send your application to the Japan Pension Service. Mail your completed form and documents to: 日本年金機構 本部 (Japan Pension Service Headquarters). The mailing address for overseas applicants is on the application form. Send everything by tracked international mail to protect against lost documents.

Step 5 — Wait for processing. The Japan Pension Service typically takes 2–4 months to process a lump-sum withdrawal application from an overseas address. If approved, the payment is made directly to your bank account by international wire transfer. If there are missing documents or questions, they will contact you — make sure the contact information you provide is accurate.

Important deadline: your application must reach the Japan Pension Service within 2 years of the date you left Japan. 'Reached' means the day they receive it, not the day you posted it. Send with enough time to arrive well before the deadline.

Find your pension book (年金手帳) or note your Basic Pension Number. This is the key identifier for your pension account. If you have lost it, contact the Japan Pension Service before you depart to get a replacement or confirmation of your number.

Request a pension record printout (ねんきん定期便 or 加入記録). This shows how many months you contributed and your average standard remuneration — useful for estimating your lump-sum amount. You can request this at any year nenkin service counter or by calling the Japan Pension Service helpline (0120-657-830, with multilingual support).

If your employer provides a pension book or issued one during onboarding, make sure you take it with you when you leave. You will need the number when you apply from overseas.

Make sure your bank account outside Japan can receive international wire transfers. Some rural bank branches in Vietnam, Indonesia, and the Philippines have restrictions on international remittances. A city-based account at a major bank is generally reliable. Have your bank's SWIFT code ready for the application form.

Your employer never enrolled you in 厚生年金: all employers in Japan are legally required to enroll their employees in 厚生年金. If your payslip shows no 厚生年金 deduction at all, and you have been working full-time, your employer may be operating illegally. You would not have a lump-sum withdrawal right because no contributions were made on your behalf. If you suspect this, check with the Japan Pension Service (they can verify whether you have a contribution record) and report non-enrollment to the Labor Standards Inspection Office.

You were enrolled in 国民年金 (national pension) instead of 厚生年金: this can happen if you were classified as a sole contractor rather than an employee, or if your employer made an error. 国民年金 contributions are also refundable under a similar process, but the amounts are lower. Ask the pension service which system you were enrolled in.

Your pension book was kept by your employer or sending organization: some employers hold onto workers' documents 'for safekeeping.' Your pension book belongs to you. If your employer has it, request it back before you leave Japan — you are entitled to it.

You have already been in your home country for more than 2 years since leaving Japan: unfortunately, the 2-year deadline is absolute. There is no appeal process or extension. If you are approaching the deadline, prioritize submitting the application now even if your documents are not perfect — a late application receives nothing.