Japan updates pension withdrawal rules for foreign workers

Japan is implementing changes to the pension withdrawal rules for foreign workers following a pension reform approved in June 2025. The new regulations aim to better reflect the long-term presence of foreign employees in the country.

A key adjustment involves increasing the maximum period used to calculate lump-sum pension withdrawals. Previously capped at 5 years (60 months), the new limit will rise to 8 years (96 months). This change is intended to support workers who remain in Japan for extended periods, such as those on Specified Skilled Worker visas.

The reform also introduces stricter conditions for individuals who are outside of Japan under a re-entry permit. The implementation of these measures will occur gradually over a four-year period, with operational details to be released according to a set schedule.