The Philippines and Japan have signed the historic agreement on social security in Manila on November 19, 2015.
The agreement is expected to reduce the burden imposed on companies and employees, thus, further facilitating people-to-people and economic exchanges between the two countries.
Employees sent from Japan to the Philippines as well as those sent from the Philippines to Japan are currently subject to compulsory coverage under the social security systems of both countries.
The agreement is aimed for solving these problems. Upon the entry into force of this agreement, those employees temporarily dispatched for a period of five years or less to the other country will be, in principle, covered only by the pension system of the country from which employees are dispatched.
The agreement will also enable the establishment of eligibility to receive pension in each country by summing up the periods of the coverage in both countries.
The social security agreement was signed by Japanese Ambassador to the Philippines Kazuhide Ishikawa and Philippine Secretary of Foreign Affairs Albert del Rosario and witnessed by Japanese Prime Minister Shinzo Abe and Philippine President Benigno S. Aquino III.