Japan to raise gov’t workers’ retirement age to 65

February 16, 2018

Tokyo- The Japanese government decided at a meeting of related ministers on Friday to raise the retirement age for national public servants from the current 60 to 65 in stages.

The government will ask the National Personnel Authority to consider salary levels for workers aged 60 and older, aiming to map out details of the new personnel system and the schedule for its implementation on the basis of the agency's study.

Bills to revise related laws, such as the National Public Service Act, are expected to be submitted to the ordinary session of parliament in 2019 at the earliest so that the retirement age will be extended in phases from fiscal 2021.

The retirement age for local government officials is also expected to be raised to 65.

The government set up a panel of officials from related ministries in June last year to discuss the higher retirement age.

At Friday's cabinet meeting, the government also decided to take measures aimed at curbing an increase in total labor costs. The salaries for workers aged 60 and older will be reduced to some extent and those in managerial positions will have to step down from their posts when they reach 60 years of age.

The National Personnel Authority will discuss the scale of pay cuts for workers of 60 and older and the range of managerial posts covered by the new program.

Chief Cabinet Secretary Yoshihide Suga told the meeting that the average longevity of the public has increased sharply but the population of productive age has declined. "Creating a society where senior citizens can continue to work and lead a meaningful life is an important challenge," Suga said.

According to government sources, there are proposals for raising the retirement age of national public servants every two or three years.

If the retirement age is extended despite the lack of room to raise the cap on the national government payroll, the number of new recruits will be curbed substantially in some years depending on the number of retirees.

Some say that the impact on new employment would be smaller if the retirement age is raised every three years, according to the sources. Jiji Press