About one in three major companies plan to reduce salaries by half or more for employees who choose to work after mandatory retirement, according to a Kyodo News survey.
Fifteen of the 32 firms that were surveyed were willing to reveal the margin of decrease. Salaries will be lower but remain above 50 percent of the preretirement level at six companies, decline to below 50 percent but above the 40 percent line at another six and plunge to 40 percent or lower at three.
Ahead of the first wave of mass retirements of baby boomers at the age of 60 next year, the government has revised a law and encouraged companies to extend employment to 65.
Several companies in the survey cited downgrading or changes in employment status as the main reasons for pay reductions.
The survey was conducted late last month. The companies included Kajima Corp., Japan Airlines Corp., the Bank of Tokyo-Mitsubishi UFJ Ltd., East Japan Railway Co., Canon Inc., Tokyo Electric Power Co., Toshiba Corp, Mitsui & Co., and Toyota Motor Corp.