Two-thirds of Japanese companies let employees work past retirement age

In Other News - November 4th, 2013

Two-thirds, or 66.5% of Japanese companies, allow employees to work beyond their retirement age, a labor ministry survey showed.

The proportion of Japanese firms in which all employees can work until at least the age of 65 has sharply risen 17.7 percentage points from a year earlier, according to a survey conducted in June covering some 140,000 businesses with 31 or more employees.

The record levels came following a revised law enforced in April requiring companies to maintain the employment of these workers. The revision was implemented as the government plans to gradually rise the starting age for receiving public pension benefits.

For Japanese firms with 301 or more employees and those with 300 or fewer employees, the proportion jumped 24.6 points to 48.9% and 16.8 points to 68.5% respectively.

Firms which allow employees to stay until 70 or over stood at 18.2%, down 1.0 point.

At companies that enforce mandatory retirement at 60, a total of 366,755 people hit retirement age in the year to the end of May. Around 76.5% continued to work with their companies, including at subsidiaries or affiliates, while 22.3% chose to retire.

By Maesie Bertumen

Image: J.T. Ratcliff/Flickr