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Finland, Japan sign social security deal

Published : 23 Sep 2019, 14:41

  DF Report

Aino-Kaisa Pekonen, Minister of Social Affairs and Health and Takashi Murata, Japan's Ambassador to Finland, have signed a social security agreement between Finland and Japan in Helsinki on 23 September. Photo Tuomas Sauliala/Ministry of Social Affairs and Health.

A social security agreement has been signed between Finland and Japan with the view to ensure social security and pension system of the people moving between the countries.

Minister of Social Affairs and Health Aino-Kaisa Pekonen and Japan's Ambassador to Finland Takashi Murata on Monday signed the agreement in Helsinki, said an official press release.

The agreement, however, needs approval by the Parliament to enter into force.

The agreement concerns Finland’s earnings-related pension system and Japanese employees' pension insurance. In addition, the agreement concerns Finnish unemployment insurance and Japanese employment insurance.

The social security agreement includes provisions that apply to posted employees.

An employee posted from Finland to Japan by a Finnish company would be subject to Finnish legislation on earnings-related pensions and unemployment insurance for a maximum of five years.

During this period, insurance contributions would be paid to Finland, and Japan would not collect compulsory premiums in accordance with Japanese legislation. In this way, double social insurance contributions would be avoided.

Under the agreement, pensions accrued under the law of a contracting state are paid to persons residing in the territory of the other contracting state.