Japan and Austria signed a social security totalisation agreement on 19 January 2024. Following the exchange of diplomatic notes on 10 September 2025, the agreement will enter into force on 1 December 2025. The agreement’s goal is to prevent dual social security contributions during assignments and simplify benefits eligibility.
Key Aspects of the Agreement
While the totalisation agreement is not in effect yet, employees living in one treaty country and working in the other are generally covered by both countries’ social security schemes and must make contributions to both. This hinders businesses from sending highly-skilled workers due to additional costs and the overall uncertainty of the social security position. To prevent this, the totalisation agreement will enter into force. Here are the key aspects:
- Employees sent for up to five years from one country to another will generally be covered only by the social security system of the sending country. This has to be confirmed by the competent institutions (Japan Pension Service and “Pensionsversicherungsanstalt” in Austria) with a Certificate of Coverage.
- The agreement allows individuals to combine their contribution periods from both Japan and Austria to meet the eligibility requirements for pension benefits, which is known as “totalisation.”
- For Japan, the agreement applies to the national pension, employees’ pension insurance, the health insurance system, and unemployment benefits.
- For Austria, the agreement covers pension insurance (except for notaries), sickness, accident, and unemployment insurance.
To be eligible to take advantage of the agreement, the employee must be subject to the legislation of one or both of the countries. Special provisions apply for categories such as seafarers and pilots, reflecting their unique mobility patterns.
Global Mobility Legislation Across the World
Cross-border work forces countries to make it as seamless as possible to foster international collaboration. To that end, many countries enter into totalisation agreements (covering social security) and bilateral tax agreements (covering income tax and wage tax). For instance, the U.S. has 30 totalisation agreements and more than 60 bilateral tax agreements.
In Europe, the coordination of social security for employees moving across borders within the European Union (EU) is governed by Regulation EU883/2004. It covers the 27 EU Member States, the European Economic Area (EEA) countries (Iceland, Liechtenstein, and Norway), and Switzerland.
It’s very common for countries across the world to enter into separate bilateral tax agreements, also in the EU and EEA, as that’s not governed on an EU or EEA level.
Why This Matters for Employers
Now is the time for employers to map their internationally mobile employees between Japan, Austria, and other countries and assess which assignments will be affected. Update policies, pre-arrange Certificates of Coverage, and notify employees early to avoid surprises. Acting early ensures compliance, avoids unexpected costs, and provides clarity for mobile employees.
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Max van der Klis-Busink, MCIPP, RPP, is the Owner of Passion For Payroll and Vice President of Global Strategy on PayrollOrg’s Board of Directors.
