If you`re a citizen of Japan or Germany planning to work in the other country, you might be wondering how the social security agreement between the two nations affects you. The social security agreement, also known as the bilateral agreement on social security, was signed in 2005 and came into effect in 2010.

The agreement`s aim is to prevent double social security taxation, meaning you won`t have to pay social security contributions in both countries for the same work period. Instead, you`ll only pay into the social security system of the country where you`re currently employed.

For example, if you`re a German citizen working in Japan, you`ll only be required to pay into the Japanese social security system, not the German one. Instead, you`ll be exempt from paying social security contributions in Germany. This ensures that you don`t suffer from a financial burden of paying double social security taxes and helps you avoid legal disputes.

The agreement also ensures that both countries recognize each other`s social security programs. This means that if you`ve paid into the social security system in one country, those contributions will be taken into account when determining your benefits in the other country. This is especially important if you plan on retiring in the other country or need to claim disability benefits.

It`s essential to note that the agreement only covers certain benefits, including retirement, survivor, and disability benefits, and doesn`t apply to healthcare or unemployment benefits. If you`re planning to work in one of the two countries and require medical care, you`ll need to make sure you`re covered under the country`s healthcare system where you`re working.

In conclusion, the social security agreement between Japan and Germany is beneficial to citizens of both countries who want to work in the other country. By preventing double social security taxation, recognizing each other`s social security systems, and covering certain benefits, the agreement ensures that you`re protected while working abroad. Before deciding to work in one of the two countries, it`s always best to consult with a social security expert to know your rights and obligations under the agreement.