What percent of salary do Japanese employees pay as a pension contribution?

By | 20/07/2021

The percentage of pension contribution in salary

Japanese pensions and health insurances have their financial resources in two ways: one from national budget of Japanese government and another from contributions of residents in Japan.

Japanese employees pay contributions of pension and health insurances from their salaries in every month, that are withheld from their salaries by employers and paid collectively to the government.

The percentage of monthly contributions for Kosei Nenkin (厚生年金, employees’ pension insurance) is 9.15% of salaries. It means that about 9 in 100 of employees’ salaries is not handed down but withheld beforehand. Employees also need to contribute Kosei Nenkin from their bonuses (remunerations) at the same rate.

Relatively speaking, the burden of pension contributions is heavier for employees with middle or low level income than employees with high level incomes. The reason why is that contribution amount of Kosei Nenkin has its maximum. Employees with over 650,000yen’s monthly salary pay the constant contribution amount and don’t pay increasingly (except for bonuses. Bonuses have higher point of maximum).

Contribution ratio : Table

The table below is the contribution ratio in each level of monthly salaries:

Monthly Salary
Contribution for Kosei Nenkin
Contribution Ratio
300,000yen 27,450yen 9.15%
440,000yen 40,260yen 9.15%
650,000yen 59,475yen 9.15%
850,000yen 59,475yen 6.99%
1,000,000yen 59,475yen 5.94%

As it shows, Japanese employees pay Kosei Nenkin by a considerably high percentage.

So non-Japanese temporary employees can claim a payback of their pension contributions. It is called “Lump-sum Withdrawal Payments”.

Non-Japanese employees can claim their Lump-sum Withdrawal Payments within 2 years after leaving Japan. Lump-sum Withdrawal Payments will pay employees back their pension contributions of up to 5 years. They can receive them by Japanese yen or other currencies.

For Detailed Information..

YouAT LLC gives you services for Japanese pension and tax refunds

We YouAT LLC has more than 10 year’s history to support non-Japanese employees’ “Lump-sum Withdrawal Payments”, “Old Age Pension”, and income tax refunds.
We have staff of Labor and Social Security Attorney, Administrative Scrivener, and Tax Accountant.

Please feel free to contact us for Japanese Pension and Tax Refunds!

YouAT LLC website — > www.youat-jp.com/

Email –> info@youat-jp.com

Leave a Reply

Your email address will not be published. Required fields are marked *