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Employment in a country that has signed a social security agreement with Canada

Employment under a Social Security Agreement with Canada

    • In a scenario where a social security agreement exists between Canada and the country where an individual is employed, the terms of that agreement determine whether the employment falls under the purview of the Canada Pension Plan. An employment is deemed pensionable under the Canada Pension Plan unless specifically excluded by subsection 6(2) of the plan, provided that one of the following conditions is met:
      1. The employer operates within Canada.
      2. The employer commits to covering both the employee’s and the employer’s contributions and fulfills the obligation of submitting the necessary information slip (T4).

      Requirements of the Agreement The general prerequisites stipulated in these agreements are as follows:

      1. The individual’s employment must be subject to the Canada Pension Plan before the detachment.
      2. The employee must be mandated by their employer to work in a foreign country.
      3. The duration of the detachment should be temporary and should not surpass the maximum specified detachment period outlined in the respective agreement. Details regarding the maximum duration of initial detachment for each country can be accessed from the table of countries that have signed agreements with Canada.

      Purpose of International Social Security Agreements International social security agreements serve various purposes, including:

      1. Preventing double social security coverage, ensuring that individuals are not required to make contributions in both their home country and the host country.
      2. Protecting the social security rights of workers who move between countries, safeguarding their entitlement to benefits earned during their working years.
      3. Facilitating international labor mobility by establishing guidelines for social security coverage, ensuring continuity and portability of social security benefits for globally mobile workers.

Source: Canada’s international social security agreements – Canada.ca

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