Exchange of Diplomatic Notes for the Entry into Force of the Agreement between Japan and the Grand Duchy of Luxembourg on Social Security
May 16, 2017
1 Diplomatic notes for the entry into force of "Agreement between Japan and the Grand Duchy of Luxembourg on Social Security (the Japan-Luxembourg Social Security Agreement)" (signed on October 10, 2014) were exchanged on May 15, 2017 in Luxembourg. With this exchange, this Agreement will enter into force on August 1, 2017.
2 Currently, Japanese or Luxembourgish employees who are temporarily sent to the other country by their companies (e.g. expatriate staff) are obliged to join the pension systems medical insurance systems, among others, of both countries, causing dual payment of pension contribution in both countries.
Under this Agreement, which is aimed at solving such problem, those temporarily sent for a period of five years or less will be, in principle, subject only to the pension system and medical insurance system, among others, of the original country.
They will also be able to establish their entitlement to receive pension benefit, by totalizing the periods of coverage under both countries' systems.
3 It is expected that the entry into force of this Agreement will reduce the burden imposed on companies and employees and further promote human and economic exchanges between Japan and Luxembourg.