The Agreement on Social Security between China and Canada was signed here Thursday.
Under the deal, Canadian companies and their employees sent to work temporarily in China will continue to contribute to Canada Pension Plan, while Chinese companies operating in Canada and their posted employees will continue contributing to China's pension program.
Signed by Hu Xiaoyi, vice minister of China's Ministry of Human Resources and Social Security and Alice Wong, Canada's Minister of State, the agreement will eliminate situations in which individuals and their employers have to contribute to both Canada Pension Plan and the comparable pension program of China for the same work.
It will result in substantial savings and increase the economic competitiveness of Canadian companies operating in China. Chinese companies and their employees sent to work in Canada will benefit from the same advantages.
The agreement will enter into force once Canada and China have completed the approval procedures specified in their respective legislation.
"Our government is committed to creating an environment that will help facilitate increased trade between Canada and China. This social security agreement represents yet another step forward in strengthening the relationship and cooperation between our two countries," said Alice Wong.