Starting Next Month, 'Obligation to Make Employment Efforts Until Age 70' Will Be Implemented

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] In Japan, where the elderly population aged 70 and over exceeds 20%, the "Elderly Employment Stabilization Act," which allows workers to work until the age of 70 if they wish, will be enforced starting next month.

According to the Asahi Shimbun on the 30th, the "Elderly Employment Stabilization Act," which stipulates the obligation for companies to make efforts to guarantee employment opportunities until the age of 70, will take effect from the 1st of next month.

Currently in Japan, companies are obligated to employ workers up to the age of 65 only if they wish, and the core of this law is to raise this age limit to 70.

This law allows for extending the existing retirement age or re-employment in various forms such as individual business owners after the age of 65.

The Japanese government has defined the "employment until 70" stipulated in this law as a non-punitive "effort obligation," but plans to promote mandatory measures in the long term.

According to a survey conducted last year by the Ministry of Health, Labour and Welfare, 33.4% of companies have already established systems that allow working beyond the age of 66. Additionally, 12.7% of companies were found to allow employees to work regardless of age if they wish.

Meanwhile, from next month, the "Equal Pay for Equal Work" system, which eliminates wage gaps between regular and non-regular employees, will also apply to small and medium-sized enterprises in Japan. This system was first implemented mainly in large companies starting from April last year.

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