When you start working for a company in Japan, you must transition from municipal public coverage to your employer's social insurance scheme if one is available. Joining your company's plan requires you to complete official cancellation procedures for National Health Insurance at your local municipal office. Understanding how National Health Insurance and National Pension function helps international students, graduates, and job seekers manage their administrative transition smoothly in 2026.
What happens to your health insurance when starting a job in Japan in 2026?
When residing in Japan as a registered foreign national with a residence period proving a stay over one year, you are eligible for National Health Insurance if you have not joined another health insurance plan. However, individuals holding visa statuses for "Short Term Stay", "Diplomatic", or "Official" purposes, or those with expired visas, are not eligible. According to the Komatsu City Official Website, after taking out a policy, your official insurance card is sent by post, meaning you must have a functional mailbox ready.
If any of your personal details change, such as your name or address, you must notify your municipal office within 14 days. Under National Health Insurance, designated medical institutions cover 70% of treatment costs, leaving you responsible for paying the remaining 30%. General dental treatments are covered under this scheme, but orthodontics receives no insurance benefit, so consulting your dentist beforehand is advised. Routine immunizations are normally free of charge.
Because pregnancy is not classified as an illness, standard medical insurance benefits do not apply to regular care; however, a Lump Sum Birth Allowance is paid out when an insured person gives birth. If an insured individual passes away, a specified benefit is paid to the person who holds the funeral. If medical expenses increase following treatment for an illness or injury, the cost difference can be refunded after submitting a formal application. If you are involved in an accident, you must report it to the police, and the person responsible must pay for treatment costs. Insurance tax payments are settled using payment slips mailed to your address, which can be paid at designated financial institutions like banks or credit associations. If your employer offers a social insurance scheme, you should join it.
How do you cancel National Health Insurance when starting employment?
Switching to an employer's health insurance scheme does not automatically cancel your municipal coverage. You must actively go through the cancellation procedure at your local municipal office when any of the following three conditions apply:
- You have joined the health insurance scheme of your employer
- You are returning to your home country
- In the event of death
When moving out of your municipality or exiting Japan, you must hand in your physical insurance card to the municipal office. Completing this cancellation step avoids payment confusion and ensures your records remain compliant. Always verify your situation directly with municipal officers or your company's administrative department.
How does the National Pension scheme work for foreign residents aged 20 to 60?
In Japan, the National Pension is a government-operated system funded by policyholder insurance premiums and state contributions. Everyone aged between 20 and 60 residing in Japan who has not joined another public pension plan, such as employer Welfare Pension, must join the National Pension Plan. Foreign nationals living in Japan are included in this requirement. A pension notebook is issued after joining the plan.
Benefits provided under the National Pension Plan include:
- Basic Pension for the Elderly: Paid when a policyholder reaches 65 years of age, provided the total period of paying insurance premiums exceeds 25 years.
- Basic Pension for the Disabled: Paid according to the level of disability if a policyholder becomes disabled due to an illness or injury.
- Basic Pension for the Bereaved: Paid to surviving family members (a wife with child or children, or child/children) when a policyholder dies.
How can foreign workers claim the Lump Sum Withdrawal Benefit after leaving Japan?
Foreign students and temporary workers often leave Japan without qualifying for long-term pension benefits due to a short period of stay. To resolve this, Japan established a Lump Sum Withdrawal Benefit system for foreign nationals.
To qualify for this lump-sum payment, you must fulfill specific requirements:
- Your length of pension insurance premium payment must exceed six months.
- You must claim the benefit within two years of returning to your home country.
This benefit enables foreign workers who paid premiums during their stay in Japan to recover a portion of their pension contributions after returning home.
Finding a place to stay
When transitioning from student status to full-time employment or job hunting in Japan, securing your housing before starting your job or immediately after your visa status is confirmed is highly recommended. Having your accommodation set up beforehand allows you to complete resident registration and municipal procedures without delay. For newcomers moving to Tokyo, OHAYO Stay offers furnished monthly apartments and rooms in Tokyo. The monthly price includes electricity, gas, water and Wi-Fi, allowing you to manage your living expenses easily as you begin your career. Furthermore, booking requires no guarantor, no key money and no agency fee; booking is online with a passport or ID and a credit card, helping you settle smoothly into your new life.
FAQ
What should I do if my address or name changes while enrolled in National Health Insurance?
You must notify your local municipal office of any changes to your name or address within 14 days.
Are dental orthodontics covered by National Health Insurance?
No, while general dental treatment is covered, orthodontics receives no insurance benefits under National Health Insurance.
How long do I have to claim the Lump Sum Withdrawal Benefit after leaving Japan?
You must claim the lump sum withdrawal benefit within two years of returning to your home country, provided your premium payment period exceeds six months.
Sources
- 自治体公式サイト「Insurance and Pension／小松市ホームページ」(checked 2026-10-15)
Facts are summarized in our own words; see the linked pages for the official details.
Rules and dates can change. Always confirm with the official source before you apply.