Social Security Agreement between Canada and Japan: What You Should Know
If you`re planning to work or live in Japan, or if you`re a Japanese national looking to move to Canada, you may be wondering how social security benefits will work for you. Fortunately, the social security agreement between Canada and Japan provides some answers.
The agreement, which came into effect on October 1, 2019, aims to eliminate double contributions and ensure that workers have access to social security benefits in both countries. Here are some key points to keep in mind:
Coverage
Under the agreement, employees who are sent by their employer to work in the other country for five years or less are exempt from mandatory social security contributions in that country. Instead, they can continue to pay into their home country`s social security system. This means that if you`re a Canadian citizen working in Japan for a few years, you don`t have to worry about paying into the Japanese system – you can keep contributing to Canada`s Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).
For longer-term assignments, employees will generally be subject to social security contributions in the country where they`re working. However, they may be able to apply for exemptions if they can show that they`re already covered under their home country`s system.
Benefits
Under the agreement, workers who have contributed to both countries` social security systems may be eligible for benefits from both. For example, if you`re a Japanese national who has worked in Canada and contributed to the CPP, you may be able to receive CPP benefits when you retire. Similarly, if you`re a Canadian citizen working in Japan and contributing to the Japanese system, you may be eligible for Japanese social security benefits.
The agreement covers a wide range of benefits, including retirement, disability, and survivor benefits. However, it`s worth noting that not all benefits are available to all workers – eligibility depends on factors such as how long you`ve worked in each country and when you started contributing to each system.
Claiming Benefits
To claim social security benefits under the agreement, you`ll need to apply through the appropriate authority in your home country. For example, if you`re a Japanese national living in Canada and want to claim Japanese social security benefits, you`ll need to contact the Japanese social security agency.
It`s also important to keep in mind that you may need to provide documentation to prove your eligibility for benefits. This can include things like employment records, tax documents, and proof of residence.
Final Thoughts
The social security agreement between Canada and Japan is designed to make it easier for workers to move between the two countries and access social security benefits. However, it can be a complex topic, and there are many factors to consider when determining your eligibility for benefits.
If you`re planning to work or live in Japan, or if you`re a Japanese national moving to Canada, it`s worth consulting with a qualified professional to make sure you fully understand your social security obligations and rights under the agreement.