On September 28, Financial Union News (Editor Shi Zhengcheng) reported on Saturday by local media that in the face of Japan's aging population and shrinking labor force, the listed company japan Aviation (JAL, referred to as JAL) will adjust the salary scheme for retired rehired personnel starting in October, offering experienced employees aged over 60 with a salary similar to pre-retirement.

Although Japanese law stipulates that 60 is the retirement age, it is not until 65 that retirees can really receive retirement pensions, so many elderly Japanese workers hope to continue working during these 5 years. According to statistics, approximately 80% of Japanese companies have established policies for extending employment.

Previously, for older employees who wished to continue working after the age of 60, JAL would provide contracts annually, but salaries would decrease by 40%-60%.

It is reported that this policy adjustment will affect approximately 1,000 JAL employees aged 60 to 65, including ground and maintenance personnel, pilots and cabin crew. However, for employees over 65, the existing pay reduction rules will still apply.

Under the new framework, retired rehired employees will be divided into four levels, while also striving for 'performance salaries' and 'performance bonuses'. According to JAL's introduction to the media, the highest level of ground staff is expected to have an annual income exceeding 10 million yen (approximately 0.49 million RMB), higher than the company's average employee income of 9.21 million yen for fiscal year 2023.

This change aims to retain more experienced senior employees. With the overall reduction in the labor force, 40%, or 5,800 employees, of japan Aviation are currently between 50 and 60 years old. Although employees aged '60+' are becoming increasingly important for japan Aviation's daily operation, few are keen to continue doing the same work at half the salary.

According to the data from the Japanese Ministry of Land, Infrastructure, Transport and Tourism, about 30% of the approximately 7,000 captains and first officers in the country are over 50 years old. This means that the batch of pilots who started flying at japan Aviation in the 1990s will soon reach retirement age.

Currently, the policy is that international aviation routes can fly up to 64 years old after physical examination and necessary training, while domestic aviation routes in Japan can continue to fly up to 67 years old. It is reported that after reaching the retirement age at Japan Airlines, 90% of pilots will choose to stay and continue working.

According to Japan Airlines President Mitsuko Tottori, the new salary framework is expected to increase annual expenditures by "several hundred million yen." She also emphasized that investing in talent is not an expense, but an investment. Japan Airlines also stated that while improving the treatment of retired senior employees, measures will be taken to ensure that it does not affect younger employees, such as increasing overseas dispatch opportunities for employees with less than 10 years of working experience.

According to statistics, after peaking in the 1990s, Japan's working-age population (15-64 years old) has been in a continuous shrinking state.

Data from the Japanese government also indicates that nearly 80% of men and 60% of women in the country are still working in their early 60s. In 2021, Japan passed an amendment to the "Act on Stabilization of Employment for Elderly Persons," requiring local companies to "create conditions for employees to work until the age of 70." A survey last year revealed that only 10% of elderly people in Japan can earn a similar level of salary post-retirement.