Official Procedures for Resignation

Resident Tax

If you have already decided on your new employer, you can continue to pay inhabitant tax by having it deducted from your salary as long as you smoothly complete the necessary procedures and notify your employer.

Normally, if you do not follow these procedures, if you do not inform your employer, or if you have been away from your job for more than one month, the resident tax will be deducted from your salary until the month you leave, after which you will be required to pay it yourself.

You can choose to pay the tax in a lump sum or in installments.

If you resign between January and May, you may choose to have the balance of the resident tax for the previous two fiscal years (up to May) deducted in a lump sum from your resigning company’s salary.

Since this will greatly reduce your take-home pay, it is advisable to check with your employer in advance.

Procedures for Receiving Unemployment Benefits

Unemployment benefits can be received upon fulfillment of certain conditions.

The amount of benefits depends on the reason for resigning (personal or company reasons) and the amount of salary for the previous six months.

Retirement at retirement age is often considered to be for company reasons, but in fact, for the purposes of unemployment benefits, it is treated as “retirement for one’s own reasons. This is because the time of retirement is known in advance.

After resigning, when you receive the release letter, you must go to the Hello Work office with jurisdiction over your place of residence and complete the application procedures for receiving unemployment benefits.

Also, since the benefits are not paid immediately after application, we recommend that you apply for the benefits as soon as possible after receiving the release letter.

Pension

If you were enrolled in the Employees’ Pension while you were employed, your pension will be automatically deducted from your paycheck, but you will need to go through the procedures to switch your pension after you retire.

You can choose from the following two procedures.

→Switch to the National Pension

You must pay the pension yourself.

→Become a dependent on your spouse

You can be a dependent of your spouse only if you are the second insured person and your annual income is less than 1.3 million yen.

Health Insurance

After retirement, you can choose from the following three procedures to change your health insurance.

→Voluntary continuation of existing health insurance

You can continue to be enrolled in the health insurance system you were enrolled in before you retired.

→Enroll in National Health Insurance

If you enroll in National Health Insurance, you will have to pay the premiums yourself. Insurance premiums vary depending on your area of residence.

→Become a dependent of a family member

You can be covered by your family only if your annual income for the year after your resignation is less than 1.3 million yen.

Notification of Change of Affiliation

When a foreigner with a working visa resigns from a company,

in addition to the procedures up to this point, it is necessary to notify the Immigration Bureau of the change within 14 days of the resignation as a ” Separation from the Organization of Activity (place of employment)”.

This notification is called the “Notification Procedure Concerning the Organization to Which the Foreign National Belongs, etc.” and is to be made by the foreign national himself/herself, and is separate from the notification made by the company from which he/she resigned.

Some foreign nationals may be unaware of this notification, but it is a procedure that must not be forgotten, as failure to do so may affect the visa change or renewal procedures later on.

Summary

In this article, we have introduced the official procedures that are required when resigning from a job in Japan, but foreigners are also required to follow visa-related procedures in addition to these, so there are many things to be aware of.

For more information on visa-related procedures required when resigning as a foreigner, please refer to the related blog, “What are the procedures when a foreign worker resigns? for more information on visa-related procedures required when a foreign worker resigns.

Related Blog

The Necessary Procedure of Resignation as Foreigners in Japan

外国人労働者が退職した際の手続きとは？

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