MANILA, Philippines – Japan and the Philippines both agreed to put an end to the burden of double enrollment in pension plans by expatriate workers, the Japanese embassy announced on Friday, November 20. 

In a statement, Japan said Philippine Foreign Affairs Secretary Albert del Rosario and Japanese Ambassador Kazuhide Ishikawa both signed on Thursday the Philippines-Japan Social Security Agreement.

Under it, expatriate workers in the Philippines and Japan who are temporarily dispatched for a period of 5 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.”

This means that they will no longer be required to pay pension premiums in both countries. (READ: Most Filipinos not ready for retirement – study)

However, the agreement “will also enable establishment of eligibility to receive pension in each country by totalizing the periods of the coverage in both countries.”

The social security agreement was formalized in the presence of Philippine President Benigno Aquino III and Japanese Prime Minister Shinzo Abe, who met at the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit on Thursday. (READ: APEC leaders close summit by condemning terror attacks)

“It is expected that the conclusion of this Agreement will reduce the burden imposed on companies and employees, thereby further facilitating people-to-people and economic exchanges between Japan and the Philippines,” the Japanese embassy added.

Systems in place by end-2015

Abe on Thursday said the Philippines-Japan Social Security Agreement will “resolve the problem of double enrollment in pension plans by expatriates and we welcome its signing which has just taken place.” 

“To enable the people of the Philippines to offer housework support services in Japan’s special terms, both sides have agreed to work to establish the necessary mechanisms by the end of this year,” Abe added in a joint press conference with Aquino on the last day of the APEC Summit in Manila.  

According to Aquino, the social security agreement aims to maintain the benefit rights of workers who have divided their careers between the Philippines and Japan. 

“We hope to further boost the synergies of our economic cooperation for the benefit and progress of the peoples of both our countries and the greater region,” said Aquino, who also called his bilateral meeting with Abe as “extremely productive.” 

Apart from the social security agreement, Japan also announced on Thursday that it is lending the Philippines P93.46 billion ($1.99 billion) for a 36.7-kilometer railway connecting Tutuban, Manila, and Malolos, Bulacan. 

Japan is one of the Philippines’ 3 strategic partners, aside from the United States and Vietnam. – Rappler.com

*$1 = P47.04