Unemployment Benefit at 60 and 65 in Japan: How Much Does Leaving at 64 Change?

From 60 to 64, the benefit rate's lower limit is 45%

If you leave at 60 to under 65, the basic daily allowance is worked out the same way: the daily wage (total wages for the 6 months before leaving ÷ 180) times the benefit rate. What differs is the rate: 45 to 80% at 60 to 64, compared with 50 to 80% under 60. Once the daily wage exceeds 11,800 yen (a monthly salary of about 354,000 yen), the rate is 45%.

The gap is largest for monthly salaries of around 250,000 to 350,000 yen. At 300,000 yen, it's 987 yen less a day, or about 150,000 yen less over 150 days. The daily wage cap at 60 to 64 is also lower, at 16,940 yen versus 17,740 yen at 45 to 59, and the basic daily allowance cap is 7,623 yen.

Benefit days at mandatory retirement and extending the benefit period

Mandatory retirement and contract expiry when you chose not to renew make you a general leaver, with no benefit restriction and 90 to 150 days depending on coverage. Employer-initiated separation at 60 to 64 gives 90 to 240 days (see how many days of unemployment benefit you get).

From 65, it's the older job seeker benefit (a lump sum)

People who leave at 65 or older receive the older job seeker benefit instead of the basic allowance. Rather than being paid in 4-week installments, it's paid as a lump sum after one unemployment certification.

• Amount: an amount equal to the basic daily allowance × 30 days (under 1 year of coverage) or 50 days (1 year or more)
• Daily amount: the same 50 to 80% benefit rate as under 65. The daily wage cap is 14,510 yen, the same as at 29 and under (daily amount cap of 7,255 yen)
• Eligibility: 6 or more insured months in total in the year before leaving
• Deadline: within 1 year from the day after leaving. There's a 7-day waiting period, plus a benefit restriction if you left voluntarily
• The days don't vary by reason for leaving: 30 or 50 days even if employer-initiated
• If you meet the conditions, you can receive it each time you leave a job after turning 65

At a 300,000-yen monthly salary with 1 year or more of coverage, it's 6,207 yen × 50 days = 310,350 yen. Payment is decided in one go at the first certification day after filing, and the money arrives about 1 week later.

The gap between leaving at 64 and at 65

Whether you time a retirement or contract end for 64 or 65 makes a big difference to what you receive. With 20 or more years of coverage and mandatory retirement (no benefit restriction), the comparison looks like this.

Legally, you turn 65 on the day before your birthday. So you count as having left at 64 only if you retire by two days before your 65th birthday. Leaving just a little earlier can make a difference of hundreds of thousands of yen, which is why retiring at "64 years and 11 months" gets talked about.

How it interacts with pensions

The older job seeker benefit received from 65 can be received alongside an old-age pension. It isn't reduced even if you look for work while receiving your pension. The basic allowance under 65, as noted above, can't be received alongside the old-age employees' pension before 65, and the pension stops from the month after you apply for work at Hello Work.

Unemployment benefit and the older job seeker benefit are both tax-free, so unlike pensions, no income tax or resident tax applies. Whether you can receive a pension before 65 can be checked in the special old-age employees' pension. For an outlook on retirement living costs, see also how to draw down retirement savings.

FAQ

Can I get unemployment benefit at 65 or older?

You receive a lump sum, the older job seeker benefit, rather than the basic allowance. You qualify with 6 or more insured months of employment insurance in the year before leaving, and it's 50 days of the basic daily allowance with 1 year or more of coverage, or 30 days with under 1 year. At a 300,000-yen salary with 1 year or more, it's 310,350 yen.

Is retiring at 64 years and 11 months really better?

Comparing unemployment benefit alone, retiring by two days before your 65th birthday gets you the basic allowance (150 days for mandatory retirement with 20 or more years of coverage), which is more than the 50-day lump sum from 65. At a 300,000-yen salary, the difference is about 470,000 yen. But also check the suspension of your old-age employees' pension before 65, your retirement allowance and whether it's treated as voluntary.

Can I receive both the older job seeker benefit and a pension?

Yes. The old-age pension at 65 or older and the older job seeker benefit aren't adjusted against each other. If you receive the basic allowance under 65, your old-age employees' pension before 65 (special or early claiming) is suspended.

Can I get unemployment benefit after mandatory retirement?

Yes, if you're willing and able to work and are looking for a job. Mandatory retirement carries no benefit restriction, and the days are 90 to 150 depending on coverage. If you don't plan to work right away, applying within 2 months of leaving extends the benefit period by up to 1 year.