OSAKA -- Sanyo Electric Co. will introduce a retirement pay system combining merit and seniority to cope with an increase in job mobility, company officials said Wednesday.
The current seniority-based system is unable to attract competent mid-career job switchers, who have come to play more important roles at Japanese companies, the officials said.
Under the new system, to be introduced in October, workers will receive up to 20 merit-based points annually as well as points corresponding to length of service.
Seniority points will be designed to increase for employees who have been with the company for 20 to 25 years.
Annual points will accumulate until retirement and be multiplied by 10,000 yen to calculate retirement money, the officials said.
Merit and seniority points are expected to be combined on an equal footing.