With the amendments to the Act on Stabilization of Employment of Elderly Persons enforced in April 2021, employers are required to make efforts to secure employment opportunities for workers up to age 70 (hereinafter, “employment opportunity security measures,”) in addition to the obligation to secure employment of workers up to age 65. In December 2023, the Labor Ministry released the data regarding companies’ reports on the employment of elderly workers (hereinafter, the “report data”), which helps understand companies’ efforts to meet the requirement.
[1] Employment opportunity security measures
Companies are required to take any of the measures from 1 to 5 below. Unlike the obligation to secure employment of workers up to 65, employment opportunity security measures include work entrustment contracts or other types of indirect employment that support employees to work up to age 70.
1. Raising of mandatory retirement age to 70
2. Abolishment of mandatory retirement system
3. Introduction of continued employment system up to 70 (reemployment, extended employment)
*This includes employment with specially related employers (parent companies, subsidiaries, affiliates, etc.) and other companies.
4. Introduction of a system to conclude work entrustment contracts continuously up to 70
5. Introduction of a system to have workers engage with the following social contribution businesses
[2] Status of employment opportunity security measures
The data show 29.7% of the companies that submitted the report have employment opportunity security measures in place. By company size, 30.3% of small- and medium-sized companies have already taken such measures, increasing 1.8 points from the previous year. The ratio was 22.8% among larger firms, growing 2.4 points year-on-year. This indicates that smaller firms are strengthening efforts to keep elderly workers. In analyzing the data, companies with 21 to 300 employees were classified as “small- and medium-sized companies,” while those with more than 300 employees are classified as “large companies.”
As for the types of measures, 2.3% of the companies have raised the mandatory retirement age to 70, while 3.9% have abolished the system altogether. 23.5% said they have introduced a continued employment system, and 0.1% reported to have implemented a system to support continued employment as contract workers, etc.
*Percentages may not add to 100 due to rounding.
[3] Status of mandatory retirement system
As part of an employment opportunity security measure, it is becoming common for companies to raise mandatory retirement age. Currently, 30.8% of the companies set the retirement age at 65 or over, or have abolished the retirement age system altogether. The following shows the percentages of companies’ retirement ages.
|
Age 60 |
66.4% |
|
Age 61-64 |
2.7% |
|
Age 65 |
23.5% |
|
Age 66-69 |
1.1% |
|
Age 70 or over |
2.3% |
Facing a serious labor shortage, many firms are striving to make use of workers beyond 65 of age. Please use the data as a reference and consider effective measures.
[Reference]
Labor Ministry, “Result of fiscal 2023 report on the employment of elderly workers”
https://www.mhlw.go.jp/stf/newpage_36506.html
The information is valid as of the date of this article.
