40代独身無職のゆる生活 Yuru Life Journal 
Losing your job can be financially challenging, raising concerns about daily expenses and future savings. However, utilizing the National Pension exemption system can help minimize the impact on your future pension benefits. This article explains the details of the exemption system and how to apply for it to secure your financial future.
- Difference Between National Pension and Employees’ Pension Insurance
- Contribution Obligations and Pension Eligibility
- First Steps After Losing Your Job
- What Is the National Pension Contribution Exemption System?
- How to Apply for the Exemption and Required Documents
- Should You Make Additional Payments for National Pension?
- Conclusion: You Should Absolutely Use the National Pension Exemption System!
Difference Between National Pension and Employees’ Pension Insurance
The National Pension (Basic Pension) is a mandatory system for all residents of Japan aged 20 to 59. It mainly covers self-employed individuals, freelancers, and unemployed individuals. However, salaried employees and public servants are also enrolled in the National Pension through the Employees’ Pension Insurance system.
The Employees’ Pension Insurance is primarily for company employees and public servants, and contributions are based on salary. The longer you contribute to the Employees’ Pension, the higher your future pension benefits.
Contribution Obligations and Pension Eligibility
| Category | Pension System | Contribution | Payment Period | Eligibility for Benefits | Future Pension (from age 65※3) |
| Self-employed, freelancers, unemployed | National Pension | Fixed amount*1 | Age 20 to 60 | At least 10 years of contributions | National Pension |
| Company employees, public servants | Employees’ Pension (includes National Pension) | Employer covers half; amount based on salary*2 | Until age 70 (if employed) | At least 1 year of contributions | National Pension + Employees’ Pension |
※1 The National Pension premium for the 2024 fiscal year (Reiwa 6) is 16,980 yen per month.
※2 The Employees’ Pension Insurance premium rate for the 2024 fiscal year (Reiwa 6) is 18.3% of the standard monthly salary (half, or 9.15%, is covered by the employer).
※3 Pension benefits can be claimed early between the ages of 60 and 65, but the amount received will be reduced.
- The National Pension requires uniform payments for 40 years, from age 20 to 60, to receive the full amount. However, if there are unpaid or exempted periods, the pension benefits will be reduced.
- The Employees’ Pension is paid at a fixed rate based on income. The length of enrollment and average salary determine the future pension amount. The longer the enrollment period and the higher the salary, the greater the pension benefits.
- Failure to pay pension contributions may result in losing eligibility for disability pension or survivor’s pension in case of disability or death.
First Steps After Losing Your Job
If you become unemployed and have not yet secured a new job, the first thing you should do is switch to the National Pension. When you leave a company, you lose eligibility for the Employees’ Pension, so it is essential to promptly switch to the National Pension.
If you fail to complete this procedure and leave your payments unpaid, your future pension benefits may be reduced. To secure your pension eligibility and prepare for retirement, make sure to complete this process without delay.
Japan Pension Service – Procedures for National Pension Enrollment After Leaving a Job
Electronic Application (National Pension) (Applying through MyPortal is recommended)
Since there is no income while unemployed, it may be difficult to pay National Pension contributions. In such cases, you can take advantage of the National Pension Contribution Exemption System.
What Is the National Pension Contribution Exemption System?
The National Pension Contribution Exemption System allows for full or partial exemption of pension contributions in cases of financial hardship. To qualify for this exemption, your previous year’s income must be below a certain threshold.
The exemption criteria are as follows:
- Full Exemption: (Number of dependents + 1) × 350,000 yen + 320,000 yen
- Three-Quarter Exemption: 880,000 yen + dependent deduction + social insurance deduction, etc.
- Half Exemption: 1,280,000 yen + dependent deduction + social insurance deduction, etc.
- One-Quarter Exemption: 1,680,000 yen + dependent deduction + social insurance deduction, etc.
For full-time employees or public servants, quitting a job does not usually qualify them for the standard exemption since they had income in the previous year. However, a special exemption for unemployment allows them to qualify for an exemption regardless of their previous year’s income.
For example, if a single person loses their job and has no additional income, their household income is considered zero. By applying for the exemption under this special rule, they can qualify for a full exemption.
Since maintaining as much savings as possible during unemployment is important for financial security, applying for this exemption can help reduce financial stress.
How to Apply for the Exemption and Required Documents
You can apply for the exemption online using My Number Card via MyPortal. The required documents are as follows:
- A copy of the Employment Insurance Separation Notice (“雇用保険被保険者離職票”) issued by your previous employer.
- A copy of the Employment Insurance Recipient Certificate (“雇用保険受給資格者証”) or Employment Insurance Entitlement Notice (“雇用保険受給資格通知”) issued by Hello Work.
For more details, please refer to the Japan Pension Service – National Pension Contribution Exemption and Payment Deferral System.
Benefits of Applying for the Exemption
By utilizing the Special Exemption for Unemployment, you can enjoy the following benefits:
- If full exemption is approved, the exempted period will not be treated as an unpaid period and will still count toward your pension eligibility.
- During the exemption period, the government will cover half of the pension contributions on your behalf.
- You can make additional payments (追納) for half of the exempted amount to receive full pension benefits in the future.
Payment Simulation for One Year of Unemployment
※ Based on the 2024 National Pension premium of 16,980 yen/month
| Status | Annual Contribution Payment | Payment amount | Additional Payment Needed for Full Benefits |
| No Exemption | 203,760 yen | 203,760 yen | 0 yen |
| Full Exemption | 0 yen | 101,880 yen （Covered by the government） | ◎101,880 yen (half of the original amount) |
| Unpaid (No Application) | 0 yen | 0 yen | 203,760 yen |
Should You Make Additional Payments for National Pension?
In 2025, the full amount of the National Pension (Old-age Basic Pension) will be ¥69,308 per month and ¥831,696 per year. Based on this, we conducted a simulation. While future payment amounts and pension benefits will be influenced by inflation, this is a rough estimate for reference.
For example, if you receive a full exemption for two years (effectively paying only half), you will be missing one year’s worth of contributions. This means that your payment period will be equivalent to 39 years instead of 40 years.
| Payment Period | Monthly Pension Amount | Annual Pension Amount | Annual Difference | Total Difference Over 20 Years (Until Age 85) | Additional Payment Required | Return Ratio |
| 40 years (Full Payment) | 69,308 yen | 831,696 yen | ||||
| 39 years | 67,575 yen | 810,904 yen | 20,792 yen | 415,840 yen | 203,760 yen | 2.04x |
| 38 years | 65,842 yen | 790,111 yen | 41,585 yen | 831,700 yen | 407,520 yen | |
| 37 years | 64,110 yen | 769,319 yen | 62,377 yen | 1,247,540 yen | 611,280 yen | |
| 36 years | 62,377 yen | 748,526 yen | 83,170 yen | 1,663,400 yen | 815,040 yen |
- Regardless of the payment period, if you live until 85, the return on additional payments is approximately 2x.
- The break-even point is estimated to be around age 75. This means the longer you live past 75, the more you benefit from making additional payments.
Additionally, company employees and public servants receive both National Pension (Old-age Basic Pension) and Employees’ Pension (Old-age Employees’ Pension). Since Employees’ Pension benefits increase with longer enrollment periods, losing pension enrollment due to unemployment can significantly impact future pension benefits. Therefore, securing the longest possible enrollment period is an important retirement strategy.
Conclusion: You Should Absolutely Use the National Pension Exemption System!
If you become unemployed, using the National Pension exemption system can minimize the impact on your future pension benefits. If you have zero income, applying for a full exemption ensures you do not have any unpaid periods.
Moreover, your pension eligibility remains valid during the exemption period, and if you make additional payments later, you can still receive the full pension amount. To secure your living expenses while protecting your retirement, make sure to actively use this system.
For those who were enrolled in Employees’ Pension before unemployment, the shorter enrollment period will reduce future pension benefits. If long-term income reduction is expected, a combination of exemption applications, reemployment, and side business planning will be key to ensuring financial stability in retirement.
