April 2, 2015– Ottawa, Ontario – Employment and Social Development Canada
The Honourable Alice Wong, Minister of State (Seniors), signed an Agreement on Social Security between Canada and China. The Agreement was also signed by Mr. Hu Xiaoyi, Vice Minister of China’s Ministry of Human Resources and Social Security.
This agreement on social security will provide for continuity of social security coverage for employees sent by their Canadian employers to work temporarily in China. The Agreement will eliminate situations in which such individuals and their Canadian employers will have to contribute to both the Canada Pension Plan and the comparable pension program of China for the same work. This will result in substantial savings and increase the economic competitiveness of Canadian companies operating in China. As well, Chinese companies and their employees sent to work in Canada will benefit from the same advantages.
The Agreement will enter into force once both Canada and China have completed the approval procedures specified in their respective legislation.
Justin Wood
Office of the Minister of State (Seniors)
613-852-3761
Media Relations Office
Employment and Social Development Canada
819-994-5559
media@hrsdc-rhdcc.gc.ca
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The Agreement on Social Security between Canada and China will permit continuity of social security coverage when a person is sent to work temporarily in the other country, and will prevent situations in which employees and their employers would have to contribute to the social security programs of both countries for the same work.
This new agreement will benefit Canada and China by:
- permitting Canadian companies and their employees sent to work temporarily in China to continue to contribute to the Canada Pension Plan and to be exempt from contributing to the comparable pension programs in China for the same work; and
- permitting Chinese companies and their employees sent to work temporarily in Canada to benefit from the same advantages.
This will result in substantial savings and increase the economic competitiveness of Canadian and Chinese companies operating in each other’s territory.
Canada has signed 59 international social security agreements, of which 56 are in force, with the following countries:
Antigua and Barbuda
Australia
Austria
Barbados
Belgium
Brazil
Bulgaria
Chile
Croatia
Cyprus
Czech Republic
Denmark
Dominica
Estonia
Finland
France
Germany
Greece
Grenada
Hungary
Iceland
Ireland
Israel
Italy
Jamaica
Japan
Jersey/Guernsey
Korea
Latvia
Lithuania
Luxembourg
Republic of Macedonia
Malta
Mexico
Morocco
Netherlands
New Zealand
Norway
Philippines
Poland
Portugal
Romania
St. Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Serbia
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Trinidad and Tobago
Turkey
United Kingdom
United States
Uruguay
Agreements that have been signed with India, Peru and China are not yet in force. They will enter into force once Canada and each of these countries has completed its respective legal process.
