Pension system in Japan. Requirements

If you are living in Japan, You must know about how pension system works in Japan. The amount of pension you will received is determined by how many years you have paid for that pension. To receive a pension, you must pay pension at least for ten year and above. After 65 age, you start getting pension.

In pension, there are two type of pension included.
They are:-

• a. National Pension(Basic Pension)
• b. Employee Pension

Citizen have to choose any one of this two pension. Either National Pension Or Employee Pension.

Any citizen in Japan, who age between 20 to 65 must pay the National Pension.
After the age of 65, pension will be received. This pension is called Old age pension.

Citizen who are working in company Japan, must pay employee pension from their company.
After the age of 65, pension will be received. This pension is called Employee Pension.

Difference between National Pension and Employee Pension

Citizen who pay Employee Pension will receive both National Pension(Basic Pension) and Employee Pension after the age of 65.
But,
Citizen who pay National Pension will receiced only one Pension (i.e National Pension(Basic Pension)) after the age of 65.

Exceptional Cases like (Disability and Survivor) will receive national pension if they have following case mention below:

Case Number One (Citizen who pays national pension):

• Old age basic pension => Payment is made to those who have a total eligibility period of 10 years or more when they reach age 65.
• basic pension => The benefit is paid to those who meet the eligibility requirements and who have a disability level of Class 1 or Class 2 under the National Pension Act. (Exlpain below)
  From the age of 20, you will continue to receive this pension till to the death.
• Survivor basic pension => When a National Pension insured person dies, this pension is paid to the spouse who were once supported by the insured person.
  Further more, To get this pension, spouse must have a child whose age is between 0 and 18. Once his/her child turn 18 year old, spouse will not get this pension.

Case Number Two (Citizen who pays employee pension):

• Old age welfare pension =>In principle, an additional payment is made from age 65 onwards to those who have been insured under the Employees' Pension. Insurance and have met the eligibility period for the Basic Old-Age Pension.
• Disability welfare pension => If you become eligible for the Basic Disability Pension due to an injury or illness that was first diagnosed during your period as an insured person under the Employees' Pension Insurance, this will be paid on top of the Basic Disability Pension.
• Survivor welfare pension => When an insured person under the Employees' Pension Insurance dies, in addition to being eligible for the basic survivor's pension, a childless wife, husband aged 55 or over, parents, etc. are also entitled to the death of the insured person.

What is Disability level of Class 1 and Disability level of Class 2?

In pension system, disability is clisfied into three class.
there are:

• Disability level of Class 1 is
  disability level of class 1 is a (serious, critical, severe) disability.
• Disability level of Class 2 is
  disability level of class 1 is a midium disability.
• Disability level of Class 3 is
  disability level of class 1 is a (minor, light, simple) disability.