Insurance & Pension
-National Pension Plan-


Exemption and Postponement System of National Pension Premiums

There is a system of premium exemption and postponement for citizens who have difficulty in payment due to economical reasons.


[Total Amount Exemption and Contribution Postponement System for Youth] ( Postponement is for the age under 30)

○Criteria

  1. In case that the income in the previous fiscal year is the standard or below calculated by the following formulas.
    Total Amount Exemption ¥570,000 + (number of family dependents) x ¥350,000

    Income standards per household type
    Household Composition Total Amount
    Exemption
    Four-member household
    (a married couple with two children)
    ¥1,620,000
    Two-member household
    (a married couple only)
    ¥920,000
    One-person household ¥570,000

    * The table above indicates the standards for:
    • married couples of four-member and two-member households where either a husband or a wife (but not both) earns income, and
    • four-member households whose children are under the age of 16.
    Besides the income of the applicant, those of the applicant's spouse and the head of household must meet the standards.

    * The periods of total exemption or partial payments will reduce the amount of pension benefit you will receive in the future, compared with those of total amount payment. You can retroactively recover the payments for those periods as old as 10 years. Please note that a specific index will be imposed on your old contribution amount when you recover the contribution, approved to be exempted or postponed in a certain fiscal year, three or more fiscal years later.
  2. In case you or your household members  receive a livelihood assistance except for the assistance given under the Livelihood Protection Law.
  3. In case you are a disabled person or a widow, as prescribed by the local tax law, and your income in the previous fiscal year is ¥1,250,000 or below.
  4. In case you have difficulty in paying your premiums due to unemployment, or storm and flood disasters in the current or previous fiscal year of the date when you apply for Total Amount Exemption or Contribution Postponement System for Youth. Besides, you must be able to submit a document issued by a public organization which proves those difficult situations described above.

* Regarding Total Amount Exemption, the income of the applicant's spouse and the head of household also need to meet these criteria.
Regarding Contribution Postponement System for Youth, the income of the applicant's spouse also need to meet these criteria.

[Table of Approved Period for Applied Exemption]

Application Month
Year for Assessment of Income
Approved Period
July 2007
2005
July 2006 to June 2007
2006
July 2007 to June 2008
August 2007 to July 2008
2006
July 2007 to June 2008

[Partial Exemption]

○Criteria

  1. In case that the income in the previous fiscal year is the standard or below calculated by the following formulas.
    One-fourth Payment ¥780,000 + Deductible amount for family dependents + Deductible amount for social insurance premium
    Half Amount Payment ¥1,180,000 + Deductible amount for family dependents + Deductible amount for social insurance premium
    Three-fourth Payment ¥1,580,000 + Deductible amount for family dependents + Deductible amount for social insurance premium

    Income standards per household type
    Household Composition Partial Payment
    One-fourth
    Payment
    Half Amount
    Payment
    Three-fourth
    Payment
    Four-member household
    (a married couple with two children)
    ¥2,300,000 ¥2,820,000 ¥3,350,000
    Two-member household
    (a married couple only)
    ¥1,420,000 ¥1,950,000 ¥2,470,000
    One-person household ¥930,000 ¥1,410,000 ¥1,890,000

    * The table above indicates the standards for:
    • married couples of four-member and two-member households where either a husband or a wife earns income, and
    • four-member households whose children are under the age of 16.
    Besides the income of the applicant, those of the applicant's spouse and the head of household must meet the standards.

    * The periods of total exemption or partial payments will reduce the amount of pension benefit you will receive in the future, compared with those of total amount payment. You can retroactively recover the payments for those periods as old as 10 years. Please note that a specific index will be imposed on your old contribution amount when you recover the contribution, approved to be exempted or postponed in a certain fiscal year, three or more fiscal years later.

    * In case one of your dependents falls into a spouse eligible for the deduction of aged person or an aged dependent, the number will be ¥480,000. If a specified dependent, ¥630,000.

  2. In case you meet the criteria No.2 to No.4 described above at the section of Total Amount Exemption and Contribution Postponement System for Youth.
  3. Notice: The income of your spouse and the head of your household also need to meet these criteria.

○ In case approved, partial payment will be exempted.


[Necessity of Paying Partial Contributions]

○ The amount of partial contributions per month in 2008 ( As of April, 2008 )

The amount of patial payment The exempted amount
One-fourth Payment ¥3,600 ¥10,810
Half Amount Payment ¥7,210 ¥7,200
Three-fourth Payment ¥10,810 ¥3,600

* Please refer to the criteria for Total Amount Exemption and Contribution Postponement System for Youth described above on the income standards for the systems of total premium exemption and partial premium payment.

Note: If you fail to pay the partial contribution plan, the plan will be considered invalid and will not be reflected to the old-age benefit amount. It is possible that you won't have a right to receive benefits from the Basic Pension programs for the disabled and for the surviving family.

Premium payment notice will be send to you in later days. Please pay your partial contribution at financial institutions, post offices, and  convenience stores.

○Approved Period: the same as that of total amount exemption described above.


[Recommendation of Recovery of the Past Exempted-Contribution]

The periods of exemption and postponement count as contribution paid period.
The table below shows the amount of the Old-age Basic Pension (rorei kiso nenkin).

Total Amount Exemption One-third (1/3) of the amount of full contribution paid
One-fourth Payment One-half (1/2) of the amount of full contribution paid
Half Amount Payment Two-thirds (2/3) of the amount of full contribution paid
Three-fourth Payment five-sixths (5/6) of the amount of full contribution paid
Contribution Postponement System for Youth (Will not be reflected to the old-age benefit amount)

↓↓↓

In order to increase the amount of your pension benefit, we recommend that you recover the past exempted-contribution.

You can retroactively recover the payments for those as old as 10 years. Please note that a specific index will be imposed on your old contribution amount when you recover the contribution, approved to be exempted or postponed in a certain fiscal year, three or more fiscal years later.


[In Case Exemption Is Rejected]

You need to pay your premiums.
The Social Insurance Agency will send you the premium payment notices in later days. You may pay the contribution at financial institutions, post offices, and convenience stores.


[Special Payment System for Students]

○Criteria

  1. Your income in the previous fiscal year is a certain level or below.
  2. * In case one of your dependent relatives falls into a spouse eligible for the deduction of aged person or an aged dependent, the number will be ¥480,000. If a specified dependent, ¥630,000.

  3. In case you are a disabled person or a widow, as prescribed by the local tax law, and your income in the previous fiscal year is ¥1,250,000 or below.
  4. In case you have difficulty in paying your premiums due to unemployment, or storm and flood disasters in the current or previous fiscal year of the date when you apply for Special Payment System for Students. Besides, you must be able to submit a document issued by a public organization which proves those difficult situations described above.

[When Application of Special Payment System for Students Is Approved]

The period of  Special Payment System for Students in every year covers 12 months from April  to March next year...
The total amount of contribution payment will be postponed.

Recommendation of Recovery of the Past Exempted-Contribution

The period that you are approved for Special Payment System for Students will not be reflected to the old-age benefit amount if you don't retroactively recover the payments within 10 years. (It counts as contribution paid period.)

In order to increase the amount of your pension benefit, we recommend that you recover the past exempted-contribution.

Please note that a specific index will be imposed on your old contribution amount when you recover the contribution, approved to be postponed in a certain fiscal year, three or more fiscal years later.

 If you were granted the contribution postponement of the year and  pay extra  the contributions in the year after next or more  years, the confirmed insurance amount at the time  will be added corresponding the passed years..

You need to apply for this Special System every year.

Approval for Special Payment System for Students is decided based on the income of a previous fiscal year. Thus, you need to apply for the system every year.


[In Case Application of Special Payment System for Students Is Rejected]

You need to pay your premiums. The Social Insurance Agency will send you the premium payment notices in later days. You may pay the contribution at financial institutions, post offices, and convenience stores.


For more information, contact the department in charge of Pension (shimin-ka)    (TEL:072- 824-1181).