Japanese Version

 This article is applied to those whose last month month of enrollment is April 2021 or later (or last employment date is April 30th 2021 or later). If your last month of enrollment is March 2021 or earlier, please refer to the other article, Lump-sum Withdrawal: Amount – Employees Pension (Last month of enrollment: March 2021 or earlier).

 Withdrawal amount of Employees Pension is calculated as follows.

Amount of Lump-Sum Withdrawal: Employees Pension = Average Standard Remuneration x Multiplier

 The following should be noted.

  • An insured person with coverage period of 6 months or longer is eligible to apply.
    • No withdrawal for those with less than 6 months as coverage period.
    • The amount reaches its upper limit for those with 60 months or 5 years as coverage period, beyond which the amount does not increase any further.
    • An insured person already eligible for Old-Age Welfare Pension can not apply for lump-sum withdrawal. Instead, the person should apply for the old-age welfare pension when they reach pension age.
  • Approximately 20% of withdrawal payment is withheld as income tax, and the reminder, approximately 80%, is paid, unlike National Pension having no withholding tax deducted.
    • The withholding tax can be refunded later in full or partially as a separate process.
  • Average Standard Remuneration (ASR): Average remuneration as quotient of total sum of standard monthly salaries and standard bonuses divided by total premium coverage period in months.
    • Adjustment is made for monthly remuneration for March 2003 and earlier, because premium rate for monthly salary was higher in March 2003 and earlier than in April 2003 and later. In April 2003 premium contribution from bonus has been started, so that the rate on monthly salary has been lowered since to compensate.
  • Multiplier: is determined as follows, depending on insured person’s coverage period:
    • Coverage Period –> Multiplier
    • 6 months or longer but shorter than 12 months –> 0.5
    • 12 months or longer but shorter than 18 months –> 1.1
    • 18 months or longer but shorter than 24 months –> 1.6
    • 24 months or longer but shorter than 30 months –> 2.2
    • 30 months or longer but shorter than 36 months –> 2.7
    • 36 months or longer but shorter than 42 months –> 3.3
    • 42 months or longer but shorter than 48 months –> 3.8
    • 48 months or longer but shorter than 54 months –> 4.4
    • 54 months or longer but shorter than 60 months –> 4.9
    • 60 months or longer               –> 5.5

Case study:

Withdrawal amount is JPY 1,320,000, for an insured person whose average standard remuneration (ASR) is JPY 300,000, Employees Pension coverage period is 48 months and the last month of the period is April 2021 or after.

Amount of withdrawal = ASR x Multiplier = JPY 300,000 x 4.4 = JPY 1,320,000