The social security agreement between Sweden and Japan

A social security agreement between Sweden and Japan was signed on 11 April 2019. On 27 May 2021, the Swedish Government announced that they will now submit a legislative bill to the Swedish parliament, proposing to approve the agreement.

The agreement aims to coordinate the Swedish and Japanese general systems for old-age and survivor’s pensions as well as sickness and activity compensation. The agreement governs whether a person should be insured for these benefits in Sweden or in Japan.

From a Swedish perspective, the rules on export of benefits and aggregation of periods are of particular importance. The agreement will make it easier for Swedish nationals working in Japan to qualify for Japanese pension and to be able to have the Japanese pension paid out if they return to Sweden. The agreement also ensures that periods of work in both countries are taken into account when determining the right to benefits.

For posted workers between Sweden and Japan and their accompanying family members, the agreement means that it will be possible to remain in the home country’s social security system, for the benefits in question, for up to 5 years. For the employer, this means that the social security contributions referring to the benefits covered by the agreement should be paid in the home country.

If you want to know more about what this means for you as an individual or as an employer, you are welcome to contact either one of us who are responsible for questions regarding social security benefits in international contexts at EY.

Sevim Güven and Karolina Engström

A Swedish version of this article is available here

You may also want to read our previous article, Social security agreement between Sweden and Japan, from 2019.

 

Contact
Sevim Güven
+46 72 230 95 20

 

Contact
Karolina Engström
+46 76 853 23 78