The Philippines and Sweden signed a social security agreement between the two countries on Thursday 15 October 2015.
Minister for Social Security Annika Strandhäll and Philippine representative Emilio S. de Quiros inked the social security contract between the two countries. The Ministry of Health and Social Affairs plans to present a bill on approval of the agreement to the Swedish Riksdag in early 2016.
The agreement allows citizens of both countries to equal treatment of Philippine and Swedish nationals, such as secure long-term and pension benefits.
It determines whether a person is to be insured for pension and work injury benefits in Sweden or the Philippines, thus protecting people from losing their pension entitlement or work injury compensation, and avoiding social security contributions being paid in both countries.
The rules on export of benefits and totalisation of creditable periods are particularly important to Sweden. Without these rules, Philippine pensions will not be paid out to persons living in Sweden. In other words, the agreement makes it possible for individuals covered by the Philippine pension system to have their pension paid out in Sweden.
“It is important to coordinate social insurance benefits for people moving to and working in different countries, and also to ensure the security of the labour force from countries outside the EU. This agreement will benefit both individuals and companies”, says minister of social security, Annika Strandhäll.
The agreement will have to be ratified separately by the two countries before it is implemented.
Sources: www.government.se www.philstar.com