OTTAWA, Dec. 28, 2016 /CNW/ - The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development, announced today that the Agreement on Social Security between the Government of Canada and the Government of the People's Republic of China will come into force on January 1, 2017.
The Right Honourable Justin Trudeau, Prime Minister of Canada, and His Excellency Li Keqiang, Premier of the State Council of the People's Republic of China, welcomed the Agreement on Social Security during the Chinese Premier's visit to Canada in September 2016.
This Agreement on Social Security will allow Canadian businesses and their employees who are sent to work temporarily in China to continue contributing to the Canada Pension Plan (CPP). The Agreement will eliminate situations in which such individuals and their Canadian employers will have to contribute to both the CPP 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.
Quote
"I am honoured to announce that, with the entry into force of this social security agreement between Canada and China, Canadian businesses and their employees who are sent to work temporarily in China will continue to be part of the Canada Pension Plan, and their employers will benefit tremendously from economic savings."
– The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development
Quick Facts
- Canadian businesses and their employees who are sent to work temporarily in China will continue to contribute to the Canada Pension Plan. Chinese companies operating in Canada and their posted employees will continue contributing to China's pension program.
- Canada has signed 59 international social security agreements to date, of which 58 are in force as of January 1, 2017.
- Canada continues to work with China, our second-largest trading partner, on developing mutually beneficial trade, economic and people-to-people ties in line with our prosperity agenda and our values as Canadians.
Associated Links
China - Pensions and Benefits (Canada.ca)
Joint Statement Between Canada and the People's Republic of China
Embassy of the People's Republic of China in Canada
Backgrounder
The Agreement on Social Security between Canada and China will come into force on January 1, 2017.
This is a limited agreement that will allow Canadian businesses and their employees who are sent to work temporarily in China to continue contributing to the Canada Pension Plan and to no longer be required to contribute to China's pension plan. Chinese companies and their employees sent to work in Canada would also benefit from the same advantages.
Canada has social security agreements with other countries that also help individuals that have lived or worked in Canada and another country to qualify for benefits based on their affiliation to each country's pension system. By adding together their periods of social security coverage under the public pension programs of Canada and the agreement partner country, individuals may meet the minimum eligibility requirements for benefits from one or both countries. Social security agreements also strive to reduce or eliminate restrictions based on nationality or on payment of benefits abroad that may prevent individuals from receiving benefits.
Canada has signed 59 international social security agreements, of which 58 are in force as of January 1, 2017, with the following countries:
| Antigua and Barbuda |
Hungary |
Norway |
| Australia |
Iceland |
Philippines |
| Austria |
India |
Poland |
| Barbados |
Ireland |
Portugal |
| Belgium |
Israel |
Romania |
| Brazil |
Italy |
St. Kitts and Nevis |
| Bulgaria |
Jamaica |
Saint Lucia |
| Chile |
Japan |
Saint Vincent and the Grenadines |
| China |
Jersey/Guernsey |
Serbia |
| Croatia |
Korea |
Slovak Republic |
| Cyprus |
Latvia |
Slovenia |
| Czech Republic |
Lithuania |
Spain |
| Denmark |
Luxembourg |
Sweden |
| Dominica |
Republic of Macedonia |
Switzerland |
| Estonia |
Malta |
Trinidad and Tobago |
| Finland |
Mexico |
Turkey |
| France |
Morocco |
United Kingdom |
| Germany |
Netherlands |
United States |
| Greece |
New Zealand |
Uruguay |
| Grenada |
An agreement has also been signed with Peru that will come into force on March 1, 2017.
SOURCE Employment and Social Development Canada
For media enquiries, please contact: Mathieu Filion, Director of Communications, Office of the Honourable Jean-Yves Duclos, P.C., M.P., Minister of Families, Children and Social Development, 819-654-5546; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]
Share this article