Jiji Press TOKYO (Jiji Press) — The National Personnel Authority on Friday recommended law revisions to raise the retirement age of national public servants from the current 60 to 65 in stages.
The government agency also called for removing workers who reached 60 from managerial posts in principle, and reducing annual pay of those aged 60 or over to some 70 percent of their pay levels before the age.
The recommendations were submitted to the Diet and the Cabinet. The government aims to introduce legislation to make relevant law amendments at the next ordinary Diet session starting early in 2019.
When the retirement age hike should start has yet to be decided.
Currently, public servants at or over 60 are allowed to continue working under a reemployment system. But they have to accept a big pay cut.
The government agency proposed limiting the salary cut to some 30 percent, hoping to keep work motivation from decreasing while curbing personnel costs.
As exceptions to the basic age limit for managers, the agency said workers who reached 60 should be allowed to remain at their managerial posts if they have specialist knowledge.
Also proposed was a short-hour work system for public servants finding it difficult to work regular hours for reasons including the need to take care of aged relatives.
The agency also recommended raising monthly salaries for national public servants in fiscal 2018 by 0.16 percent, or ¥655, from the previous year and annual bonuses by 0.05 month of salary to 4.45 months.
It thus proposed a rise in both salaries and bonuses for the fifth consecutive year. If the recommendations are fully implemented, the average annual pay will increase by ¥31,000.
In an estimate released Friday, the Finance Ministry said the recommended pay hikes would raise personnel costs for central government employees by ¥36 billion.
On the pay scale, young officials will benefit more from the recommended hike.