Living in Japan is full of great experiences – amazing food, efficient trains, friendly people. But one thing that can catch you off guard is the cost of mandatory pension payments. If you’ve been wondering how to reduce pension payments in Japan, you are not alone.
Many foreign residents in Japan find the system confusing or financially stressful, but I’m here to help you with the step-by-step guide with the accurate information based on the official website of Japanese National Pension System.
I actually went through the exemption application process by myself before, so this post also contains the real-experience based tips that you cannot get it from the official websites!
💴First of All, What is the National Pension and Why should I Pay?
If you are living in Japan with a residence card（在留カード）and registered at your local city or ward office, you are mandatory to be in part of the Japan’s national pension system. The National Pension（国民年金）ensures that everyone has at least a basic retirement income.
If you are between 20 and 59 years old, you’re expected to pay into Japan’s National Pension system – even as a foreigner. The standard monthly fee (¥17,500 in 2025) can be tough, especially if you are a student, just started working or quitting the job. But here is the good news: Japan offers ways to reduce(exempt) or temporarily postpone the pension payments. And yes, foreigners can apply too! Let’s break down how to apply, how much they reduce, and what documents you need to apply.
📌How to Reduce Pension payments in Japan Legally
① Option 1: Apply for an Exemption
If you’re facing financial hardship or simply earning a low income, you can apply for a partial or full exemption, different levels depending on your income (full, ¾, ½, or ¼ exemption). While the system evaluates your previous year’s income, there is no fixed public income threshold. Instead, your application is evaluated based on the factors like your tax records, household situation, and your income.
💡Bonus Tip to reduce pension payments in Japan:
If you recently quit your job and received a “Rishokuhyo”（離職票/Notice of Unemployment）from your previous employer, you may qualify for a temporary full exemption – even if your income last year was high. Be sure to bring this document to the city hall or ward office and check at the pension counter if it can work. In my case, when I quitted my previous company, I brought the notice of unemployment to the city hall and they said my pension can be fully exempted for next 2 years if I want.
Of course you may be worried with your Japanese level to have this process at the city hall by yourself, don’t worry, I will give some tips at the end of this article to have smoother process!
② Option 2: Apply for Postpone Payments
If you are under 50 and have low income, there is a payment postpone (deferral) system. It allows you to postpone paying now and catch up later when you’re more financially stable. You won’t be charged late fees, and you can still count those months toward future eligibility – if you choose to catch up within 10 years. It’s especially good option for a job seeker, new grads, part-time worker or language school student.
Besides, there’s also a student-only deferral system if you are currently enrolled in a Japanese university, college, or language school. This option is especially helpful if you don’t have any steady income yet. There is a Multi-language FAQ guides from the National Pension official website, so don’t forget to check it also.
💡Please be noted that:
- Even though it’s called ‘postpone’ or ‘deferral’, it doesn’t mean you’re off the hook forever – you’ll need to catch up later if you want full pension benefits.
- If you recently changed your job and have a gap in employment, you may still qualify for deferral – even though your previous year’s income seems too high. Explain your current situation to the city hall staff and bring relevant documents, such as 離職票/Notice of Unemployment.
📑What Documents Do I Need to apply?
Applying for pension exemption or deferral in Japan isn’t as scary as it sounds, just bring the right documents and the friendly staff member will help you at the city hall.
Here’s what you usually need to bring:
- Your residence card（在留カード）
- The application form ➡ You can get it at the pension desk or download it from the Japan Pension website.
- (Optional) Some documents to prove your income or unemployment status
- For job seekers: 離職票/Notice of Unemployment
- For students: valid student ID or proof of enrollment
In the case of my friend who applied for the exemption, they didn’t ask for any additional documents to prove his income, all he needed to submit was the residence card and application form, since the tax record and my number is linked to the system. But just to make sure to have proof of your income, you can bring some tax certificate (which you can get it at the city hall or ward office) as a optional document.
🏢Where Should I go to Apply？
Most applications can be done right at your local city hall or ward office. Or you can go straight to the pension office. If you are worried about your Japanese level, I remember Chuo pension office staff member had a good English level and friendly guided me, so consider visiting here, it’s nearby Tsukiji station which has good access.
Summary of How to Reduce Pension Payments in Japan
Understanding how to reduce or postpone the pension payments in Japan can feel complicated at first, but once you know your options and how to do it, it’s surprisingly manageable.
Here’s a recap:
- If your income is low or you’ve lost your job, you can apply for a pension exemption.
- If you’re under 50 or a student, a payment deferral might be a better fit.
- You’ll need simple documents like your residence card, student ID, or the notice of unemployment.
- And remember: you need to reapply every year, even if your situation hasn’t changed.
💡Many people assume the system is rigid, but in reality, there are flexbile options to reduce pension payment in Japan! I’ve personally used these systems when between jobs, and it really helped me to ease the financial pressure.
If you’re still unsure which option is right for you – or just want to talk it through – please check my 30-minute 1-on-1 coffee chat session. Whether it’s about pensions, visas, job changes, or daily life in Japan, I’m happy to share what I’ve learned through my experiences in Japan.
☕Book a coffee chat with me here→
Also, don’t forget to check out my other posts on practical Japan life tips! There’s always more to explore and make your life in Japan much easier. 😉
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