Japan’s Ministry of Health, Labor and Welfare (MHLW) announced increases in 2023 annual pension payout amounts, as well as in national pension insurance premiums. In 2023, pension benefits will grow by 1.9% for those aged 68 or older and 2.2% for those aged 67 or younger. Japan’s MHLW announced the first pension benefits increase in three years. Japan revises pension benefits every year to take into account changes in prices and wages. The planned revision will be reflected in benefits from April when the new fiscal year begins: the new benefits payments actually begin in June.
However, the MHLW notes that the 2023 increases are lower than the general inflation rate. The Internal Affairs and Communications Ministry said the country’s consumer prices rose 2.5% last year. Other data shows that nominal wages grew 2.8% annually on average in the past three years.
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Summary Of Pension Benefit Increase and Modest Premium Changes
For those aged 67 or younger who have paid pension premiums for 40 years, the full monthly benefits under the pension program will reach ¥66,250 per person, up ¥1,434 from 2022. Monthly benefits for a couple under the program will rise ¥4,889 to ¥224,482.
For those aged 68 or over, single-person benefits will increase by ¥1,234 to ¥66,050, and the couple benefits by ¥4,200 to ¥223,793.
The ministry also said the monthly pension premium will be ¥16,520 per person for fiscal 2023, down ¥70 from the previous year, and ¥16,980 for fiscal 2024, up ¥460.
2023 National Pension Amounts At A Glance
67 or Under: Increase by 2.2%
Single National Pension: 66,250 yen (+1,434 yen)
Couple National Pension: 224,482 yen (+4,889 yen)
68 or Over: Increase by 1.9%
Single National Pension: 66,050 yen (+1,234 yen)
Couple National Pension: 223,793 yen (+4,200 yen)
2023 & 2024 National Pension Insurance Premiums and Advance Payments
FY2023: 16,520 yen (-70 yen from 2022)
FY2024: 16,980 yen (+460 yen from 2022)
advance Premium Payments
6 months advance payment: 97,990 yen (account transfer), 98,310 yen (cash)
1 year’s advance payment: 194,090 yen (account transfer), 194,720 yen (cash)
2 year’s advance payment: 385,900 yen (account transfer), 387,170 yen (cash)
There are also various circumstances that individuals must be aware of such as:
Low-income thresholds. When income is too low to pay contributions or there are other reasons for hardship, people can apply for the exemption from contribution payments at the municipal office of their place of residence. The JPS branch office examines the previous year’s income and other circumstances. If an application is approved, an exemption of full or partial amount of contribution payment is granted.
Lump Sum Withdrawal For Repatriating Foreigners. For non-Japanese, people may file a claim for the Lump-sum Withdrawal Payments within two years after they register to leave Japan (no longer Japanese residents). To apply, they need to satisfy the various conditions that can be confirmed at a local office.
Japan’s MHLW announced the first pension benefits increase in three years. Source materials for this article are provided by the Japan Pension Service and/or the Japanese MHLW as below.
Regarding the advance payment amount of national pension insurance premiums in 2020