Tuesday. 22.10.2019
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Social security agreement between Finland and Japan

The agreement includes provisions that apply to posted employees and pensions.

Japan's Ambassador with Minister of Social Affairs and Health. Photo: Twitter @akpekonen.
Japan's Ambassador with Minister of Social Affairs and Health. Photo: Twitter @akpekonen.
Social security agreement between Finland and Japan

Finland's Minister of Social Affairs and Health Aino-Kaisa Pekonen and Japan's Ambassador Takashi Murata signed today in Helsinki a social security agreement between both countries. The agreement would affect the social security of persons moving between Finland and Japan.

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.

Avoid double social security contributions

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. This is important for the competitiveness of companies.

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 agreement contains legislative provisions which require the consent of the Parliament. This is why Parliament has to consider the agreement before it can enter into force.

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