Japan Pension Bonus 2026: Senior Foreign Workers Can Now Earn ¥620,000/Month Without Cuts (在職老齢年金 改正)
🇯🇵 日本語要約
2026年4月から、働いている年金受給者（じゅきゅうしゃ、65歳以上）のルールが変わります。今までは、給料と厚生年金の合計が月51万円を超えると、年金が減らされていました。今は、月62万円までOKです。シニアの外国人にもいいニュースです。
Japan Pension Bonus 2026: Senior Foreign Workers Can Now Earn ¥620,000/Month Without Cuts (在職老齢年金 改正)
By Yamada · Chiba, Japan · May 2026
If you are 65+ years old, still working in Japan, AND receiving Kosei Nenkin (厚生年金, company pension) — this rule change is good news for you.
From April 2026, the threshold for pension reduction for working seniors went up from ¥510,000/month to ¥620,000/month. This means you can earn MORE without your pension being cut.
This affects:
- Senior Japanese workers
- Senior foreign workers (PR holders, long-term residents, naturalized Japanese)
- Anyone working past age 65 while collecting pension
In this guide:
- What is the "in-service pension reduction" rule?
- Old vs new threshold
- Who benefits
- Calculation examples
- Strategy for foreign workers
- FAQ
Table of Contents
1. What Is "In-Service Pension Reduction"?
In Japan, people aged 65+ usually start receiving Kosei Nenkin (厚生年金) — the company-based public pension.
But if you keep working AND your salary is high, the government reduces your pension. This is called 在職老齢年金 (zaishoku rorei nenkin) — "in-service old-age pension."
Why? The government's logic: you do not need full pension if you are already earning a good salary.
Problem: Many seniors stopped working or reduced hours to keep their full pension. Japan has a labor shortage. This rule made it worse.
So the government raised the threshold in 2026.
2. Old Rule (Before April 2026)
| Combined Monthly Income | Pension Reduction |
|---|---|
| Up to ¥510,000 | No cut. Full pension. |
| Over ¥510,000 | Pension is reduced. For every ¥2 over, ¥1 is cut. |
Example (old rule): Senior earns ¥600,000/month salary + ¥150,000/month pension = ¥750,000 combined.
- ¥750,000 - ¥510,000 = ¥240,000 over threshold
- Cut: ¥240,000 / 2 = ¥120,000/month pension cut
- New pension: ¥150,000 - ¥120,000 = ¥30,000/month
Pretty harsh.
3. New Rule (From April 2026)
| Combined Monthly Income | Pension Reduction |
|---|---|
| Up to ¥620,000 | No cut. Full pension. |
| Over ¥620,000 | Reduction starts. For every ¥2 over, ¥1 cut. |
The threshold went up by ¥110,000.
Same example (new rule): Senior earns ¥600,000/month salary + ¥150,000/month pension = ¥750,000 combined.
- ¥750,000 - ¥620,000 = ¥130,000 over threshold
- Cut: ¥130,000 / 2 = ¥65,000/month
- New pension: ¥150,000 - ¥65,000 = ¥85,000/month
This senior gets ¥55,000/month MORE than before. ¥660,000 more per year.
4. Calculation Examples
Example A: Tanaka-san (PR holder, age 67, Sales Manager)
- Salary: ¥400,000/month
- Pension: ¥120,000/month
- Combined: ¥520,000
Old rule: ¥520,000 - ¥510,000 = ¥10,000 over → cut ¥5,000 → pension ¥115,000
New rule: Under ¥620,000 → no cut → full pension ¥120,000
Savings: ¥5,000/month = ¥60,000/year
Example B: Maria (Filipino PR holder, age 68, Caregiver)
- Salary: ¥250,000/month
- Pension: ¥80,000/month
- Combined: ¥330,000
Old rule: Under ¥510,000 → no cut → ¥80,000
New rule: Same → ¥80,000
No change. She was always under the limit.
Example C: Wei (Chinese PR holder, age 70, Director)
- Salary: ¥650,000/month
- Pension: ¥200,000/month
- Combined: ¥850,000
Old rule: ¥850,000 - ¥510,000 = ¥340,000 over → cut ¥170,000 → pension ¥30,000
New rule: ¥850,000 - ¥620,000 = ¥230,000 over → cut ¥115,000 → pension ¥85,000
Savings: ¥55,000/month = ¥660,000/year
5. Foreign Workers: Who This Affects
To benefit, you need:
Who qualifies:
- Permanent Resident (永住権) holders who worked many years
- Long-Term Residents (定住者) age 65+
- Naturalized Japanese (帰化) who became citizens after working
- Spouse of Japanese (日本人の配偶者) age 65+ with own work history
Who does NOT benefit:
- Foreigners on work visa who left before retirement age
- Senior workers without Japanese pension history
- Self-employed (only Kokumin Nenkin, not Kosei)
6. How to Apply / Update Status
You do not need to apply. The change is automatic.
If you are already on the working-pension system, your monthly pension amount will be recalculated automatically from April 2026. Check your Nenkin Net (https://www.nenkin.go.jp/) account for the new amount.
If you start a NEW job at age 65+, register with your employer's Shaho. The pension office handles the rest.
7. Yamada Hack: Maximize Your Income
For foreign seniors planning to stay in Japan:
Tip 1: Negotiate salary at the ¥620,000 sweet spot.
If you can negotiate salary + pension combined = ¥620,000, you get max pension + good salary. Best balance.
Tip 2: Defer pension to age 70 or 75.
- Start pension at 65 = 100% rate
- Start at 70 = 142% rate (42% bonus)
- Start at 75 = 184% rate (84% bonus)
If you plan to work hard until 70, defer pension. Later you get more.
Tip 3: Combine NISA + pension.
- NISA: tax-free investment growth
- Pension: monthly income
- Together: stable retirement
Tip 4: Apply for PR before retirement.
If you have not yet, get PR. As PR you can work flexibly into retirement.
Tip 5: Avoid the "wife's dependent" trap.
If your wife has been your dependent and never worked, she has minimal pension. Encourage her to work part-time to build her own pension.
8. Real Stories
Tanaka-san (Korean origin, naturalized Japanese, age 70):
Tanaka was a Korean-Japanese who naturalized in 1995. He still works as a consultant for ¥500,000/month and gets ¥180,000 pension. With the new rule, he saves ¥35,000/month. He plans to keep working until 75.
Sandra (Filipino PR, age 66, Hotel Front Desk):
Sandra earns ¥220,000/month and gets ¥70,000 pension. Combined ¥290,000 is far under ¥620,000. No change for her, but she is happy the system is more generous.
Pradeep (Indian PR, age 68, IT Consultant):
Pradeep earns ¥700,000/month + ¥160,000 pension. Combined ¥860,000.
- Old: cut ¥175,000 → pension ¥(-15,000) → he got ¥0 pension
- New: cut ¥120,000 → pension ¥40,000
- New pension: ¥40,000/month. Better than ¥0.
Aiko (Japanese-Brazilian, age 67, Factory Supervisor):
Aiko earns ¥350,000/month + ¥110,000 pension. Combined ¥460,000. Under both thresholds. No change for her either.
9. FAQ
Q1: I am 60. Does this rule affect me?
Partially. If you take early pension (繰上げ受給), there is a similar reduction system. The new ¥620,000 threshold also applies.
Q2: What if I am self-employed?
The rule applies only to Kosei Nenkin (company pension). Self-employed have Kokumin Nenkin (national pension), which is not reduced.
Q3: Does this apply to my pension refund (脱退一時金)?
No. This rule is for ongoing pension payments to people who stay in Japan.
Q4: I am a foreign senior considering moving to Japan to work. Can I get pension?
You need at least 10 years of contributions to qualify for Japanese pension. Check the social security agreement between Japan and your country. Some agreements allow combining pension years.
Q5: My salary changes monthly. Which month is used?
Pension office uses "Standard Monthly Compensation" (標準報酬月額) — basically your average monthly salary as reported by your employer.
Q6: When will I see the new amount?
April 2026 onwards. Check your Nenkin Net account or wait for the annual statement.
Q7: I am 75. Does the new rule apply to me?
Yes. From 70+ years, there is a separate calculation but it also uses the new ¥620,000 threshold.
Q8: Will the threshold rise again?
Possibly. There is talk of eliminating the reduction entirely by 2030. Watch the news.
Q9: Does Kenpo Hoken (健康保険) increase if I work past 65?
Yes, you keep paying health insurance. You also pay slightly more for elderly medical care after 75.
Q10: I want to retire. Should I quit my job?
Up to you. With the new rule, you can earn more before pension is cut. Many seniors choose to work part-time for income + social life.
10. Official References
- Japan Pension Service (日本年金機構): https://www.nenkin.go.jp/
- Ministry of Health, Labour and Welfare: https://www.mhlw.go.jp/
- Nenkin Net (online account): https://www.nenkin.go.jp/n_net/
Related EasyNihon Tools
- Pension Refund Calculator (for those leaving Japan)
- Wealth Builder Dashboard
- NISA / iDeCo Guide
Japan needs senior workers. The government is making it easier for you to keep working and keep your pension. If you are a foreign senior in Japan, this is a quiet but real benefit. Update your Nenkin Net account and check your new payment in April 2026.
Long life, smart life. — Yamada
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