Japanese Companies to Mandate Employment Guarantee Until Age 70 Starting April Next Year

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Japanese government is preparing a policy plan to guarantee that employees who wish to do so can work until the age of 70 starting from April next year. This is a plan by Prime Minister Shinzo Abe's cabinet to increase the working age in the era of '100 years' in order to expand social security resources and reduce the burden on pension finances.

According to Kyodo News on the 9th, the Ministry of Health, Labour and Welfare of Japan held a Labor Policy Council, an advisory body to the minister, on the 8th and prepared a policy plan containing measures to promote employment of elderly people.

Based on this, the Ministry of Health, Labour and Welfare plans to submit a related law amendment bill at the regular Diet session opening on the 20th.

According to the policy plan, from April next year, companies will be obligated to make efforts to allow those who wish to work until the age of 70.

The Abe administration is promoting a policy that allows healthy and motivated people to work until their desired age, citing Japan's entry into a super-aged society.

Extending the working period in the life cycle can expand social security resources and reduce the burden on pension finances.

Prime Minister Abe also emphasized creating a "lifetime active society" at his first press conference of the new year.

Japan, where the average life expectancy in 2018 was 87.32 years for women and 81.25 years for men, has entered a super-aged society where the proportion of elderly people aged 70 and over exceeds 20%.

This content was produced with the assistance of AI translation services.