Japan debates kicking out foreign workers who fail to pay pension contributions

A new bill currently being pushed through parliament would give the Japan Pension Service the power to revoke foreign defaulters’ permanent residency

Pension contributions have historically been more easily avoided than taxes or health-insurance premiums in Japan. Even former PMs have done it

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A view of Mount Fuji from Tokyo. All residents of Japan aged 20 to 59 are required by law to pay into the country’s National Pension System. Photo: AP

Published: 9:30am, 14 May 2024Updated: 9:48am, 14 May 2024

Peter wasn’t too concerned about the monthly letters he’d received from Japan’s pension agency since the turn of the year, but the foreign national started to become alarmed after officials began calling him in recent weeks to ask about his missing payments.

He had been making the required payments into the country’s mandatory pension system while self-employed, he told This Week in Asia, but “let it slip” around a decade ago – and was hoping to fly under the radar until he leaves Japan for good.

But refusing to pay may no longer be an option. The state-run Japan Pension Service is set to get a raft of new powers to chase defaulters – including the ability to revoke foreigners’ permanent residency – under a bill the government is currently pushing through parliament.

“I never heard from them about my pension payments for years, but all of a sudden they are contacting me every few weeks,” said Peter, who did not reveal his family name or nationality for fear of repercussions. “I have always paid my income taxes, my city taxes and health insurance, but I overlooked my pension.”

All residents of Japan aged 20 to 59 are required by law to pay into the country’s National Pension System. The current monthly required contribution is 16,610 yen (US$107), regardless of income.

A security guard gestures towards foreign tourists as they gather on a street in Fujikawaguchiko, north of Mount Fuji, earlier this month. Japan has been encouraging immigration in recent years to combat labour shortages. Photo: EPA-EFE

“Everyone knows that Japan has a huge national debt and that local governments are also finding it hard to pay for residents’ services, so it should not be a surprise that they are looking for ways to bring in more money,” said Peter, a resident of Kawasaki city. “Now, I don’t think there is any way to avoid paying.”