When you begin working in Japan as a Technical Intern Trainee under the Technical Intern Training Programme No. 1 (技能実習1号 – 1Go), you may notice pension insurance contributions being deducted from your salary. Foreign workers often refer to the money they may receive after returning to their home country as a “Nenkin refund”.

What is Nenkin? Can a Technical Intern Trainee who has worked in Japan for approximately one year receive this payment after returning home? What preparations are required?

1. What is Nenkin?

Nenkin (年金) refers to Japan’s public pension system. People working in Japan must pay pension insurance contributions if they fall within the applicable eligibility requirements.

Foreign nationals who return home and meet the prescribed conditions may be eligible to receive a one-off payment known as the Lump-sum Withdrawal Payment (脱退一時金).

This does not mean that all pension contributions paid during employment will be refunded in full. The amount payable depends on the pension scheme, the period of participation and the salary used to calculate pension contributions.

2. Can Technical Intern Trainees under Programme No. 1 receive a Nenkin payment?

Yes, they may be eligible if they meet all the requirements. However, working in Japan for one year or having pension contributions deducted from your salary does not automatically entitle you to receive the payment.

Technical Intern Trainees under Programme No. 1 should distinguish between the following situations:

• Continuing to Technical Intern Training Programme No. 2: If you remain in Japan and continue participating in the pension system, you cannot claim the Lump-sum Withdrawal Payment simply because you have completed Programme No. 1.

• Completing Programme No. 1 and returning home: If you have ceased participating in the pension system, no longer have an address in Japan and meet the other eligibility requirements, you may be able to apply for the payment.

If you plan to return temporarily to Vietnam and then re-enter Japan to continue your training or employment, check your circumstances carefully before submitting an application.

3. Eligibility requirements for receiving a Nenkin payment

According to the Japan Pension Service, foreign nationals must meet all the applicable requirements to receive the Lump-sum Withdrawal Payment.

• You must not be a Japanese national.

• You must no longer be covered by Japan’s public pension system.

• You must have at least six months of qualifying participation. For Employees’ Pension Insurance, a minimum participation period of six months is generally required. For the National Pension Scheme, the qualifying months are determined separately according to the applicable rules and contribution record.

• You must not have met the qualifying period for an old-age pension. Generally, at least 10 years of qualifying coverage are required to receive a Japanese old-age pension.

• You must not have previously received certain pensions covered by the relevant provisions, such as certain disability pension benefits.

• You must no longer have a registered residential address in Japan.

• You must submit your claim within the prescribed period. As a general rule, the claim must be made within two years from the date you no longer have an address in Japan.

Technical Intern Trainees under Programme No. 1 should therefore check their actual pension participation periods and contribution records rather than relying solely on the length of time they have lived in Japan.

4. How to check your pension contributions on your payslip

Look for the following items on your payslip:

• 厚生年金保険料 (Employees’ Pension Insurance contributions): Contributions to the pension scheme generally applicable to employees.

• 国民年金保険料 (National Pension contributions): Contributions to Japan’s National Pension Scheme.

Check which scheme applies to you. If you cannot find a pension contribution item on your payslip or do not understand the amount deducted, ask your accepting company, supervising organisation or payroll department for an explanation.

Keep your payslips, pension-related documents such as your Basic Pension Number notification, and any records showing your insurance participation period. These documents may be useful when preparing your claim after returning home.

5. How much money can you receive from Nenkin?

There is no fixed amount that every Technical Intern Trainee under Programme No. 1 will receive.

The amount depends on the pension scheme, the number of qualifying months and the salary used to calculate pension contributions. Therefore, two people who have both worked in Japan for one year may receive different amounts.

For recipients of a Lump-sum Withdrawal Payment from Employees’ Pension Insurance, income tax of 20.42% is generally withheld at source. Those who meet the relevant requirements may be able to apply for a tax refund through a tax representative in Japan or by following the applicable tax procedures.

Be cautious of advertisements or services that guarantee a specific payment amount without checking your individual pension records.

6. How to apply for a Nenkin payment after returning home

If you have completed your training, returned home and meet the eligibility requirements, follow these general steps:

Step 1: Check your pension participation period and contribution records.

Step 2: Complete the move-out notification procedures with the relevant municipal office in Japan and confirm your pension participation status.

Step 3: Prepare the Lump-sum Withdrawal Payment claim form, your bank account details and any other documents required by the Japan Pension Service.

Step 4: Submit the claim according to the official instructions and monitor the processing of your application.

The Japan Pension Service provides application forms and related information in Vietnamese.

Official information:
https://www.nenkin.go.jp/shinsei/jukyu/sonota-kyufu/20150406.html

7. Important points for Technical Intern Trainees under Programme No. 1

• If you are moving on to Programme No. 2 and continuing your training in Japan, do not apply for the Lump-sum Withdrawal Payment simply because you have completed Programme No. 1.

• If you intend to return to Japan for work in the future, check the appropriate timing for your claim and how it may affect your previous pension participation period.

• Once you receive the Lump-sum Withdrawal Payment, the pension coverage period before the claim will no longer count towards the qualifying period for a future Japanese old-age pension. Consider this carefully before applying.

• Do not casually disclose your bank account details, passport information or personal identification details to untrustworthy service providers.

For official information on eligibility, calculation methods and application procedures, visit the Japan Pension Service:

https://www.nenkin.go.jp/service/jukyu/seido/sonota-kyufu/dattai-ichiji/20150406.html

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