Agreement on social security between Sweden and Japan enters into force on 1 June
On 1 June, the agreement on social security between Sweden and Japan enters into force. The agreement coordinates the Swedish and Japanese public old-age and survivor’s pensions systems, and sickness and activity compensation.
“I am very pleased that the agreement on social security between Sweden and Japan is now entering into force. The agreement will increase security for Swedes who live and work in Japan, and be important for Swedish companies,” says Minister for Social Security Ardalan Shekarabi.
The social security agreement between Japan and Sweden now entering into force means that it will be easier for Swedes working in Japan to qualify for a Japanese pension, and they will also be able to receive Japanese pension payments if they move back to Sweden. From a Swedish perspective, the agreement is particularly important for Swedes who work in Japan for less than 10 years.
For Swedish companies doing business in Japan, the agreement means less red tape. Moving between the two countries will also be easier when a posted employee is covered by the home country’s social security system and the employer pays the social security contributions required by the agreement in the home country.
Under the agreement, posted employees and their accompanying family members are covered by the home country’s legislation for up to five years for the current old-age and survivor’s pensions, and sickness and activity compensation. It is easier for family members when the whole family is covered by the same social insurance system.
Sweden and Japan have been negotiating a social security agreement for several years. The agreement was signed on 11 April 2019 and adopted by the Riksdag on 27 October 2021. The agreement enters into force on 1 June 2022.
Japan is Sweden’s second largest trading partner in Asia and fourth largest export market outside the EU. Some 1 800 Swedes live temporarily or on a long-term basis in Japan and about 12 000 Swedish jobs depend on exports to Japan. Japanese-owned companies in Sweden employ around 21 500 people. An EU-Japan free trade agreement entered into force in 2019 and gives Swedish companies better access to the Japanese market and its 126 million consumers.