According to local media reports on Saturday, facing the current situation of aging population and shrinking labor force in Japan, the listed company Japan Airlines (JAL, abbreviated as JAL) will adjust the salary plan for retired and rehired personnel from October, and start providing experienced employees over the age of 60 with similar salaries as before retirement.
Although Japanese law stipulates that 60 years old is the retirement age, it is not until 65 years old that one can truly receive a pension, so many elderly Japanese workers hope to continue working during these 5 years. According to statistics, about 80% of Japanese companies have implemented policies to extend employment.
Previously, for senior employees who wished to continue working after the age of 60, JAL would offer contracts annually, but their salaries would be reduced by 40% -60%.
It is reported that this policy adjustment will affect approximately 1000 JAL employees aged 60 to 65, including ground and maintenance personnel, pilots, and flight attendants. But for employees over 65 years old, the existing salary reduction rules will still apply.
Under the new framework, retired and rehired employees will be divided into four levels, while also striving for "performance-based pay" and "performance-based bonuses". JAL stated to the media that the highest level ground crew is expected to earn an annual income of over 10 million yen (approximately 490000 yuan), which is higher than the company's average employee income of 9.21 million yen in the 2023 fiscal year.
This change aims to retain more senior employees. In the context of an overall reduction in the workforce, Japan Airlines currently has 40%, or 5800 employees, who are over 50 years old. Although "60+" employees are becoming increasingly important to the daily operations of the Japanese aviation industry, few are enthusiastic about continuing the same job at half the salary.
According to data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, 30% of the country's approximately 7000 pilots and co pilots are over 50 years old. That is to say, the group of pilots who started flying at JAL in the 1990s will soon reach retirement age.
The current policy is that international flights can fly until the age of 64, while domestic flights in Japan can fly until the age of 67, after passing a medical examination and receiving necessary training. It is reported that 90% of JAL pilots will stay and continue working after reaching retirement age.
JAL President Mitsuko Tottori predicts that the new salary framework will increase expenses by "hundreds of millions of yen" annually. She also emphasized that investing in talent is not a cost, but an investment. JAL also stated that while improving the treatment of retired senior employees, measures will be taken to ensure that younger employees are not affected, such as increasing overseas dispatch opportunities for employees with less than 10 years of service.
According to statistical data, after reaching its peak in the 1990s, Japan's labor force (aged 15-64) continued to decline.
(Source: St. Louis Federal Reserve)
Meanwhile, data from the Japanese government shows that nearly 80% of men and 60% of women in the country are still working in their early 60s. In 2021, the country passed an amendment to the Employment Stability Law for Older Persons, requiring local companies to "create conditions for employees to work until the age of 70". A survey last year showed that only 10% of elderly people in Japan can receive a similar level of salary after retirement.