Social security agreement to be concluded between Finland and Japan
The social security agreement will affect the social security of persons moving between Finland and Japan. It concerns the earnings-related pension system in Finland and the Japanese workers’ pension insurance.
The agreement contains legislative provisions which require the consent of the Parliament. This is why Parliament will consider the agreement before it can enter into force. This is expected to take around one year.
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.
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.
Thanks to the social security agreement, double social insurance contributions would be avoided. This is important for the competitiveness of companies.