OTTAWA, April 2, 2015 /CNW/ - 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.
- Canadian companies and their employees 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 56 are in force.
- 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.
"Our Government is committed to creating an environment that will help facilitate increased trade between Canada and China. This social security agreement represents yet another step forward in strengthening the relationship and cooperation between our two countries."
– The Honourable Alice Wong, Minister of State (Seniors)
Service Canada Social Security Agreements
Embassy of the People's Republic of China in Canada
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
Republic of Macedonia
St. Kitts and Nevis
Saint Vincent and the Grenadines
Trinidad and Tobago
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.
SOURCE Employment and Social Development Canada
For further information: Justin Wood, Office of the Minister of State (Seniors), 613-852-3761; Media Relations Office, Employment and Social Development Canada, 819-994-5559, email@example.com; Follow us on Twitter; Like us on Facebook