Financial Services Association, September 28 (Editor Shi Zhengcheng) According to local media reports on Saturday, in the face of Japan's aging population and shrinking workforce, the listed company Japan Airlines (JAL, JAL for short) will adjust the salary plan for retirees in October and begin providing experienced employees aged 60 and above with similar remuneration to those before retirement.

Although Japanese law stipulates that 60 is the retirement age, you can't actually receive a pension until age 65, so many elderly Japanese migrant workers will want to continue working for these 5 years. According to statistics, about 80% of Japanese companies have established policies to extend employment.

Previously, for old employees who wanted to continue working after the age of 60, JAL would offer contracts on an annual basis, but pay would be reduced by 40%-60%.

According to reports, this policy adjustment will affect about 1,000 JAL employees aged 60 to 65, including ground and maintenance personnel, pilots, and flight attendants. However, for employees older than 65, the existing wage reduction rules will still apply.

Under the new framework, employees who retire will be divided into four levels, and they will also have to work hard for “performance pay” and “performance bonuses.” According to the media, JAL said that the highest-level ground workers are expected to earn more than 10 million yen (about 0.49 million yuan) per year, which is higher than the average income of the company's employees in fiscal year 2023 of 9.21 million yen.

The change is aimed at retaining more veteran employees. In the face of an overall reduction in the social workforce, Japan Airlines currently has 40%, or 5,800 employees, between the ages of 50 and 60. Although “60+” employees are becoming increasingly important to the daily operations of the Japanese airline industry, few would be keen to continue doing the same job for half their salary.

According to data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, 30% of the country's approximately 7,000 captains and deputy captains are over 50 years old. In other words, the group of pilots who started flying with JAL in the 90s of the last century will soon reach retirement age.

The current policy is that after passing the medical examination and necessary training, you can fly until the age of 64 on international flights, and until the age of 67 on domestic flights. According to reports, 90% of JAL pilots will stay and continue to work after reaching retirement age.

JAL President Mitsuko Tottori anticipates that the new salary framework will increase expenses by “hundreds of millions of yen” every year. At the same time, she stressed that investing in talent is not an expense, but an investment. JAL also said that while improving the treatment of old retired employees, it will take measures to ensure that young employees are not affected. For example, it will increase opportunities for employees under 10 years of service to be dispatched overseas.

According to statistics, Japan's working population (aged 15-64) continued to shrink after reaching its peak in the 90s of the last century.

Meanwhile, data from the Japanese government shows that nearly 80% of the country's men and 60% of women are still working when they are in their early 60's. In 2021, the country passed an amendment to the Employment Security Law for the Elderly, requiring local companies to “create conditions for employees to work until the age of 70.” According to a survey last year, only 10% of Japanese seniors can get a salary similar to their previous salary after retirement.