Exemption or Deferral of National Pension Contributions

[Exemption] Granted where the previous year's income of the applicant, their spouse and the head of household falls below the threshold, among other grounds. It comes in four levels: full, three-quarters, half and one-quarter

[Deferral] For people aged 20 to 49 whose own and spouse's previous-year income falls below the threshold — the head of household's income is not assessed

Income thresholds, against the previous year: full exemption is (number of dependents + 1) x ¥350,000 + ¥320,000; three-quarters is ¥880,000 plus dependent and social insurance deductions; half is ¥1,280,000 plus the same; one-quarter is ¥1,680,000 plus the same; deferral uses the full-exemption formula. Different figures apply to people with disabilities, widows and single parents as defined in the Local Tax Act

Where unemployment, bankruptcy or business closure can be evidenced, exemption or deferral is available regardless of the previous year's income

You can apply for any period still within two years of its payment deadline — two years and one month back from the date of application

How it counts toward the pension amount: a fully exempted period counts as half of a fully paid one, three-quarters exemption as five-eighths, half as six-eighths, one-quarter as seven-eighths — partial exemptions assume the reduced contribution was actually paid. A deferred period counts toward the coverage requirement but not toward the amount

The reduced contributions for partial exemption in FY2026 are ¥4,480 for three-quarters exemption, ¥8,960 for half, and ¥13,440 for one-quarter

Contributions covered by an approved exemption or deferral can be paid later, within ten years

Unpaid periods do not count toward the ten years of coverage the Old-age Basic Pension requires. Disability and Survivor's Basic Pension are also refused where paid periods (including exempted ones) are under two-thirds of the insured period up to two months before the month of first consultation or death, or where any contribution went unpaid in the year to that point. Applying retroactively after the injury or illness does not repair this

Students fall outside this scheme and use the Student Payment Exception. Separate schemes exist for people on livelihood assistance or receiving a disability pension (statutory exemption) and for pregnancy and childbirth (pre- and post-natal exemption)