Business

BOJ plans merit-based pay system

The Bank of Japan said Friday it will introduce a merit-based annual salary system for managerial staff beginning April, widening the salary gap among senior officials to 2.5 million yen from 800,000 yen.

The new salary system will cover 600 officials in supervisory positions, or about a third of those on the main career track at the central bank, the BOJ said.

Under the new system, directors general and advisers to the governor will receive between 12 million yen and 14.5 million yen per year, not including bonuses and allowances.

The central bank will launch a new merit-based personnel evaluation system on July 2, but it will be linked to salaries beginning April 1.

Salaries are currently only subject to the position and qualifications of each official at the bank and are not linked to performance.

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