Keidanren plans to rethink pay scales

JIJI

Keidanren, the nation’s largest business lobby, plans to seek a full-fledged review of pay scales in its guidelines for next year’s “shunto” spring wage talks.

The review is designed for firms to secure funds to keep hiring elderly people after the mandatory retirement age, usually 60, according to a draft of the guidelines.

The revised law on the employment of the elderly, set to take effect in April, will oblige firms to continue employing all retirees who want to keep working beyond the retirement age until they reach 65.

If the proportion of people who continue working beyond the retirement age rises to 90 percent from the current 74 percent after the revised law goes into effect, overall wages will increase 2 percent over the next five years, Keidanren has estimated.