PH, Japan agree on social security coverage and possible 500,000 jobs
The Philippines and Japan are working towards a better partnership, as both countries have officially exchanged diplomatic notes and notified each other on the completion of their respective constitutional requirements, which enables the two nations to enforce the “Agreement between the Republic of the Philippines and Japan on Social Security.”
The exchange of notes happened after the Japanese government’s decision to adopt a policy plan that would increase the number of foreign workers to be hired through 2025. Up to 500,000 individuals are needed to bolster the shortage of unskilled laborers in Japan, specifically, in areas like agriculture and construction.
According to the Department of Foreign Affairs (DFA), the agreement will entitle both Filipino and Japanese nationals to social security benefits in either country. It will take effect on August 1, 2018.
Currently, employees sent from the Philippines to Japan and vice versa are subject to compulsory coverage under the social security systems of both countries.
With the agreement, an employee becomes eligible to receive pension in each country by totalizing the periods of social security coverage in both countries.
Moreover, those employees temporarily dispatched to the other country for five years or less will be covered only by the pension system of the country from which the employees are dispatched.
The DFA said the agreement is expected to reduce the burden on companies and employees, which will encourage further people-to-people and economic exchanges between the Philippines and Japan.
via Manila Bulletin / Roy Mabasa
