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If You Leave Japan to Work in the Agreement Country

Home > English > International Social Security Agreement > If You Leave Japan to Work in the Agreement Country

Last updated date:Friday, 3 15 2013

1) Elimination of dual coverage

If you are an employee

・Before the agreements

When you are sent by your employer in Japan to work in a foreign country, you may have to enroll in the local social security system in addition to the Japanese social security system, and may have to pay contributions to both countries.


 

・Under the agreements


【General rule】

Under the Social Security Agreements, you will be covered only by the system of the country where you work. When you are sent by your employer in Japan to the branch office in the agreement country or you are locally hired by the employer in the agreement country, you will be covered only by the system of the country.


【Temporary detachment (for not more than 5 years)】

However, when you are temporarily sent to the agreement country for the expected period of not more than 5 years, you are subject to the exception rule under the agreements. That is, you will be continuously covered by the Japanese social security system and be exempt from coverage under the system of the agreement country.


【If you work in both countries for the same period (Only for the Japan-U.K. / the Japan- Korea Agreement)】

When you work in both Japan and the agreement country for the same period, you will be covered only by the pension system in the country where your primary place of residence is located. If Japan is your primary place of residence, you will be covered only by the Japanese pension system and exempt from coverage in the other country. If it is in the agreement country, you will be covered only by the pension system of the country.

In case that your primary place of residence is in Japan


 

NOTE : Again, if you are temporarily sent to the agreement country, you are subject to the rule of temporary detached workers.


System you will be covered by


Depending on your work and detachment condition, you will be covered by the system as follows:


If you are a self-employed person


The above mentioned rules also apply to self-employed persons. If you plan to temporarily work as a self-employed person in an agreement country, you will be continuously covered only by the Japanese system. If you plan to work for more than 5 years in the agreement country, you will be covered only by the agreement country's system. If you are not a self-employed person in Japan currently but you will work as a self-employed person in the agreement country, you will be covered only by the agreement country's system.

《If you are a crew of a ship》

Respective agreement provides which system you will be covered by.

Germany/ U.K./ Korea/ U.S./ Belgium/ France/ Canada/ Australia/ Netherlands/ Czech/ Spain/ Ireland/ Brazil/ Switzerland/ Italy
 

2) Conditions for continuous coverage by the Japanese system


If you are an employee


In order for you to be continuously covered only by the Japanese social security system and to be exempt from coverage under the other country's system, you need to satisfy all the following conditions:

  1. You are covered by the Japanese system while you are detached to the agreement country.
  2. While you are detached, you continue to be employed by your employer in Japan.*
  3. Your expected detachment period is not more than 5 years.

* "you continue to be employed by your employer..." means that you provide services to your employer and your employer controls personnel matters and provides labor managements for you.
 

If you are a self-employed person


In order for you to be continuously covered only by the Japanese social security system and exempt from coverage of the system in the agreement country, you need to satisfy all the following conditions:

  1. You are covered by the Japanese system while you are working in the agreement country.
  2. You continue to work as a self-employed person in the agreement country.
  3. Your expected period of work in the agreement country is not more than 5 years.

Notes on Individual Rules under each Social Security Agreement


(Germany)

(U.K.)

(U.S.)

(Belgium)

(France)

(Canada)

(Australia)

(Netherlands)

(Spain)

(Ireland)

(Brazil)

(Switzerland)

Notes on persons covered by the Japanese National Pension system


If you are covered by the Japanese National Pension system (and the Japanese National Health Insurance system), and then you leave Japan - register to the authority that you move your address to an agreement country, you will become no longer subject to coverage of the Japanese National Pension system (and the Japanese National Health Insurance system). Consequently, you need to enroll in the National Pension system voluntarily, in order to qualify for condition 1 above ("You are covered by the Japanese system while you are detached to the agreement country / while you are working in the agreement country").

This treatment is for the Agreements listed below, hence under the other agreements, you will be covered only by the social security system in the agreement country when you transfer your residence to the agreement countries. (NOTE : You are not required to satisfy condition 1 above under the Agreement with Germany.)

[Agreements]

with U.K., Korea, U.S., Canada, Australia, Netherlands, Czech, Spain, Ireland, Brazil, Switzerl and and Italy.

Incidentally, the National Health Insurance system does not provide voluntary enrollment plan. However, under the Agreement with the U.S., you are considered to satisfy condition 1 above even if you are not covered by the National Health Insurance system while you work in U.S.

3) Extension of your work period in the agreement countries

When you need to work in an agreement country exceeding the originally expected work period, your employer in Japan (or if you are a self-employed) may apply for the extension of the exemption.

In principal, you are exempt from coverage under the social security system of each agreement countries for up to 5 years. However, depending on your employer's (or your) specific reason, you may be granted the extension of the exemption in addition to the 5 years. The maximum extension period exceeding 5 years depends on respective agreement.

Germany/ U.K./ Korea/ U.S./ Belgium/ France/ Canada/ Australia/ Netherlands/ Czech/ Spain/ Ireland/ Brazil/ Switzerland/ Italy

If your detachment (or self-employed activity) period exceeds the specified maximum period mentioned above, you will be covered only by the system in the country where you work, according to the basic rule.

4) Treatment of your spouse and children

If you are permitted to continue to be covered by the Japanese social security system and exempt from the system of the other country during your temporary detachment or self-employed period, your accompanying spouse and child also continue to be covered by the Japanese social security system as an insured person or dependent family members.

On the other hand, your accompanying spouse and child will no longer covered by the Japanese social security system as an insured person or one of your dependent family members if you are locally hired or sent to an agreement country for a long period of time and you are covered by the agreement country's system and exempt from the Japanese system. That is, your spouse becomes ineligible for coverage under the Japanese National Pension system as a category III insured person and the Japanese Employees' Health Insurance system as one of your dependant family members if he/she has been financially supported by your income. And your child who is financially supported by your income becomes ineligible for coverage under the Japanese Employees' Health Insurance system.

In this case, if the registered residence of thespouse or child remains in Japan, he/she needs to enroll in the National Pension system and the National Health Insurance system as an insured person.

And if your spouse or child transfers his/her registered address to the agreement country, he/she can apply for voluntary enrollment inthe Japanese National Pension system (applicable to Japanese citizens aged 20 or over but under 65 who are living overseas). However, the Japanese National Health Insurance system does not have voluntary enrollment plan.
 

Notes on Individual Rules under each Social Security Agreement


(Czech)

(Switzerland)

5) Voluntary enrollment in the Employees' Pension Insurance system of Japan

Even if you are covered only by the agreement country's social security system and are exempted from compulsory coverage of the Japanese Employees' Pension Insurance (EPI) system, you can still enroll in the EPI on a voluntary basis (voluntary EPI coverage). You may opt for this voluntary EPI coverage, for example, when your employer in Japan sent you to an agreement country for more than five years, i.e., you are covered only by the agreement country's system, or when your detachment periods is extended over the initial five years (exemption period may be extended) and you become covered only by the agreement country's system after that five years.
Please note that until March 1st, 2012, this voluntary EPI coverage system was available only for workers who are sent by their employers in Japan to work in the United Kingdom (U.K.) and are covered only by the U.K. system, under the agreement between Japan and the U.K. After March 2012 this voluntary EPI coverage is available to detached workers in any county of agreement with Japan.

If you so opt to apply, your voluntary EPI coverage is established, in principal, on the date when your application for the voluntary coverage is filed at the JPS Branch Office. Please note that if you file your application for voluntary EPI coverage within one month after the first day you are covered under the agreement country's system, your voluntary EPI coverage is retroactively established on the same first day of foreign coverage.

When you are covered by the EPI on a voluntary basis, you may file for withdrawal from the voluntary coverage any time you wish, or your voluntary coverage ends at the same time your coverage by the agreement country's system ends.

6) Voluntary enrollment in the Japanese National Pension system

Even if you are sent to an agreement country and subject only to the social security system of the country, you can voluntarily enroll in the National Pension system from the month in which you apply for the enrollment (applicable to Japanese citizens aged 20 or over but under 65 who are living overseas).

Notes on Individual Rules under each Social Security Agreement

(Germany)

7) Overseas medical care cost compensated by Japanese health insurance

While you are temporary sent to work in an agreement country, you continue to be covered by the Japanese health insurance system. If you receive medical treatments at hospitals overseas, you may claim medical care expenses to cover your cost in hospitals under the Japanese health insurance system. You may file a claim for the medical care expenses to your insurer.

8) Treatment when agreements enter into force

If your detachment or self-employment activity started prior to the effective date of each agreement, the effective date is considered to be the date when your detachment or self-employment begins. That is, you will be exempt from coverage under the social security system in the agreement country, if your detachment to the country is expected to be not more than 5 years from the effective date of the agreement.

Notes on Individual Rules under each Social Security Agreement

(France)


Procedures When You are Working in the Agreement Country