年金To Persons Working Abroad（Social Security Agreement）
Social Security Agreement
Challenges Arising from International Human Mobility
As international human mobility increases, the following problems are arising on employees sent abroad from Japan as well as employees sent to Japan:
- （１）Dual Coverage
Employees sent to other country to work there generally remain covered by the public pension system of their own country. As a result they are obliged to pay contributions to the public pension systems of both countries.
- （２）Secure of Pension Entitlement
As is the case with the Japanese public pension system, certain periods of coverage are often required to receive old-age pension benefits under the pension systems of foreign countries. Employees sent to other countries for short periods are often unable to fulfill the pension entitlement of the country due to their insufficient periods of coverage.
Concluding Social Security Agreement
In order to solve those problems, Japan concludes social security agreements that contain the following two main points:
- （１）Coordination of Applicable Legislation
If the period of detachment does not continue beyond five years, employees are exempt from the legislation of the receiving country and subject only to the legislation of their own country, whereas if the period of detachment continues beyond five years, they are subject only to the legislation of the receiving country.
- （２）Totalization of Periods of Coverage
Social security agreements facilitate pension entitlements by totalizing periods of coverage under both countries so as to fulfil the qualifying periods required to receive pension benefits from each country. The amount of pension benefit will be calculated in proportion to the periods of coverage under each country.