Canon Inc. said Friday it will extend the contracts of 192 fixed-term employees at its Utsunomiya plant in Tochigi Prefecture by six months with partial pay so they can hunt for new jobs.

The measure, which includes paid compensation for the extended period, will start in March, Canon said.

Monthly compensation will be set at 85 percent of average monthly pay for the last three months under existing contracts, averaging some ¥150,000, with a guaranteed minimum of ¥140,000, according to the company.

That is higher than 60 percent provided by the Labor Standards Law for leave compensation.

Employees who choose not to extend their contracts will be given some ¥1.5 million in special severance pay, Canon said.