Contribution period of Japanese pensions planned to extend? How will it change non-Japanese contributors?

By | 01/12/2022

Government starts considering a plan to extend Japanese pension’s contribution period, but still not certain whether or not to get implemented

The news like “contribution period of Japanese Kokumin Nenkin (National Pension) is to get extended by 5 years, to age 64” was reported (See the link below).

According to it, Ministry of Health Labor and Welfare (厚生労働省) has started considering a plan to extend Kokumin Nenkin’s contribution period by 5 years, that is scheduled to get implemented in year 2025.
Before implementation it needs to pass Japanese perlaments, with getting at least some modifications in them.
As of now it is not certain whether it will be implemented as scheduled.

Kokumin Nenkin is the pension system for all adult residents in Japan, including non-Japanese, but excluding all employees in Japanese companies. Now it requires persons between age 20 and 60 to get enrolled. Members of Kokumin Nenkin need to continue paying pension contributions throughout the enrollment, except for the exempted category such as dependents of each family or students.

Non-Japanese employees will have almost no change

But a large majority of non-Japanese residents (not permanent/long-term residents or spouses of Japanese citizens) are being employed by Japanese companies.
Employees are enrolled in not Kokumin Nenkin, but Kosei Nenkin (Employees’ pension insurance). When non-Japanese employees end their employments and leave Japan, it is usual that they also withdraw from Kosei Nenkin.
Members of Kosei Nenkin need to pay their contributions up to age 70 already under the present system (For details please see this article of our blog).
So the extension plan of this time won’t have any influences to a large majority of non-Japanese employees because they won’t have any chances to get enrolled in Kokumin Nenkin (*).

(*) But except for permanent/long-term residents and spouses of Japanese citizen, who are expected to live in Japan with or without employments.

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