CANADA — The Canadian government has signed an international Social Security Agreement with Japan that will impact pension contributions paid by Canadian companies operating in Japan.
Companies operating in Japan were previously paying significant pension contributions for Canadians workers sent to Japan.
The agreement ensures that Canadian workers can continue to contribute to the Canada Pension Plan (CPP) if their employer sends them to Japan to work temporarily. Consequently, their CPP protection will not be interrupted.
The agreement also ensures that Canadian companies and their workers are exempt from contributing to Japan ’s pension program while they are working in Japan .
“Canada is committed to entering into agreements with other countries that offer programs comparable to our Old Age Security program and Canada Pension Plan,” said minister of human resources and social development, Diane Finley.
“Agreements such as this one will help provide seniors with additional income in retirement. This agreement with Japan is also an important step toward strengthening the relationship and co-operation between our two countries.”
The agreement represents an important achievement under the Canada-Japan Economic Framework, designed to help strengthen bilateral trade and investment, as well as economic co-operation between the two countries.
The agreement is expected to take effect in late 2007.
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