What is Nenkin and how to get Nenkin tax refund after returning home from Japan?

When workers come to work in Japan, they will have to pay tax according to the regulations of the Japanese government and this is called Nenkin tax. So what is the Nenkin tax? Can foreign workers get it back after returning home?

What is Nenkin?

Nenkin (年金） is the amount of pension insurance in Japan, like Social Insurance in Vietnam. Nenkin insurance is compulsory insurance for everyone living and working in Japan. between the ages of 20 and 60 years old.

Nenkin Tax is like Social Security in Vietnam

The purpose of the Nenkin tax is that when old age - after 65 years of age, when the employee reaches retirement age and is no longer able to work, he will get a refund, if he has fully fulfilled the obligation to pay Nenkin according to the law. regulation.

In addition, when suffering an injury or death, the employee will also receive an allowance.

Conditions for getting Nenkin money after returning home from Japan

Previously, foreign workers would not be able to get their Nenkin tax money back if they returned home before retirement age. However, since 1994, the Japanese government has changed this regulation, allowing foreign workers to receive part of this money back when returning home.

Foreign workers in Japan after returning home can get their Nenkin tax money back.

Conditions for workers to receive Nenkin money after returning home:

• Never received a pension for the disabled.
• Not subject to a pension or similar payment under the laws of the host country.
• Have paid the national pension insurance or welfare pension with a term of more than 6 months.
• Does not have a residence address in Japan, and the period of removal of the address in Japan is less than 2 years.
• Do not hold Japanese nationality.
• The deadline for receiving old-age retirement has not yet been reached. The time to participate in pension payment must not exceed 25 years (Particularly from August 1, 2017 onwards, the time limit for participation will be reduced from 25 years to 10 years. Therefore, participation in insurance contributions for more than 10 years will not be eligible. apply for a one-time pension).

How to calculate the money Nenkin received

The amount of Nenkin is calculated according to the period of insurance premium payment of employees in Japan and the amount received will be calculated as follows:

Insurance from 6 to 12 months: The amount received is 39,900 yen

Insurance from 12 to 18 months: The amount of labor received is 79,800 yen

Insurance from 18 to 24 months: The amount of labor received is about 119,700 yen

Insurance from 24 to 30 months: The amount of labor received is about 159,600 yen

Insurance from 30 to 36 months: The amount of labor received is about 199,500 yen

Paying insurance for 36 months or more: The amount employees receive ranges from 239,400 yen.

Normally, the Nenkin tax refund will be divided into 2 times: the 1st Nenkin and the 2nd Nenkin, and the procedure for getting the money will be different.

Nenkin Refund Time

The time for workers to receive a Nenkin tax refund from Japan will be about 3-4 months from the time of submitting the application to the Japan Nenkin Department, provided that the dossier is not wrong.