Last updated: July 2026
In short
- If you paid into Japan’s pension for 6 months or more and are not Japanese, you can get some of it back after you leave Japan for good. This is the lump-sum withdrawal payment (脱退一時金 / dattai ichijikin).
- Right now the payout is capped at 5 years (60 months) of contributions, even if you paid in for longer.
- Important correction: many blogs and AI answers claim the cap rose to 8 years in April 2026. That is not true yet. The 8-year cap is law, but the start date has not been set (as of July 2026) – it could take effect any time up to June 2029.
- You must apply within 2 years of losing your Japan address, and only after you leave – not while still living here.
- Japan withholds 20.42% tax from the payment automatically. Most of that can be claimed back if you file a return through a tax representative.
What is the lump-sum withdrawal payment?
The lump-sum withdrawal payment (脱退一時金, “dattai ichijikin” in Japanese) refunds part of the pension contributions a non-Japanese worker paid while living in Japan, once they leave the country for good without qualifying for a Japanese pension. Japan’s public pension is built for a 10-year minimum to receive an actual pension later. Most foreign workers never reach that, so this payment exists to return some of what was paid in.
Who qualifies?
You qualify if all of these are true: you are not a Japanese national, you paid into National Pension or Employees’ Pension for 6 months or more, you no longer have an address in Japan, and you have never had the right to a Japanese pension (including disability pension).
- If you already have 10 years (120 months) or more of pension contributions, you do not qualify for this payment – you qualify for an actual pension instead, which is usually worth far more. Check your total months before assuming this applies to you.
- Both National Pension (kokumin nenkin – typically students and the self-employed) and Employees’ Pension (kosei nenkin – typically company employees) have their own version of this payment.
How much do you get back?
The payout is based on how much you contributed, capped at 5 years (60 months) of contributions – even if you paid in for 6, 8 or 10 years, only the first 60 months count.
Because of this cap, paying into the pension for more than 5 years without becoming eligible for a real pension is, in a sense, money you will never see again through this route. This is one reason the earning-freedom and visa-planning guides on this site matter – the years you spend in Japan have a real ceiling on this benefit.
[Important] The “8-year cap” rumor – what’s actually true
A law was passed on 20 June 2025 to raise the cap from 5 years to 8 years, matching the new work-training visa system. But as of July 2026, the start date for this specific change has not been officially set. The law allows up to 4 years from the day it was passed for the government to set the date by cabinet order – meaning it could start any time before June 2029.
Many company blogs and even AI-generated answers state flatly that “the cap became 8 years in April 2026.” This mixes up two different things: the broader pension reform law did take effect on 1 April 2026, but the 8-year cap for this specific payment is a separate provision inside that law with its own, still-undecided start date.
What is confirmed to be changing: once this reform takes effect, if you leave Japan while holding a re-entry permit (meaning you still plan to come back), you will not be able to claim the payment during that permit’s validity – only people who are leaving for good, without a re-entry permit, will qualify. Check the official Japan Pension Service site for the current start date before assuming either the 8-year cap or this new restriction applies to your case.
When and how do you claim it?
You cannot claim while living in Japan. File within 2 years of the date you lose your address in Japan – that means after you deregister and leave.
You will need: your pension handbook or basic pension number, a copy of your passport, proof you no longer have a Japan address, and your overseas bank account details. After you apply, the Japan Pension Service mails a “payment notice” (支給決定通知書) – keep this, you need it for the tax refund step below.
Don’t lose 20.42% – claim your tax back
Japan automatically withholds 20.42% income tax from the payment. Most people can get this back, but it does not happen automatically – you have to file a separate tax return.
Here is why: the flat 20.42% withholding treats your payment like ordinary non-resident income. But if you calculate it the way Japan calculates retirement income for residents, you get a large deduction – roughly 400,000 yen for every year you contributed (minimum 800,000 yen). For most foreign workers, this deduction wipes out most or all of the taxable amount, meaning most or all of the withheld 20.42% comes back.
- Since you will not be in Japan to file, you must appoint a tax representative (nozei kanrinin) – often a relative’s employer, a friend, or a paid service – to file the return on your behalf
- You can file this return any time in the 5 years after 1 January of the year following your payment
- Skipping this step means leaving real money on the table – for many people it is a larger amount than the effort of filing
Official source: Japan Pension Service – Lump-Sum Withdrawal Payment
Frequently asked questions
Is the payout cap really 8 years now?
Not yet, as of July 2026. The law raising the cap from 5 to 8 years was passed but has no confirmed start date – it can begin any time up to June 2029. The current cap remains 5 years (60 months) until the government announces otherwise. Check the official Japan Pension Service site before relying on the 8-year figure.
Can I apply for this while I am still in Japan?
No. You can only apply after you have left Japan and no longer have a registered address here, and you must apply within 2 years of that date.
I paid into the pension for 12 years. Do I get more money back?
If you have 10 years (120 months) or more of contributions, you likely qualify for an actual pension instead of this lump-sum payment, which is usually worth significantly more over time. If you have between 6 months and under 10 years, your lump-sum payment is still capped at 60 months of contributions even if you paid in longer.
Why was 20.42% taken from my payment, and can I get it back?
Japan withholds a flat 20.42% tax automatically. Most of it can be refunded if you appoint a tax representative in Japan and file a tax return applying the retirement income deduction, which for most people reduces the taxable amount close to zero.
Can I claim this if I still plan to come back to Japan later?
Under current rules this is possible, but a pending reform will restrict claims while you hold a valid re-entry permit once it takes effect. If you are unsure whether the new restriction already applies to you, check the official site for the current status before you leave.
Summary
- Non-Japanese with 6+ months of pension contributions and no plan to reach 10 years can claim a refund after leaving Japan
- The payout is capped at 5 years (60 months) of contributions right now – the 8-year cap is law but not yet in effect as of July 2026
- File within 2 years of losing your Japan address, only after you leave
- 20.42% tax is withheld automatically – file a return through a tax representative to get most of it back
