Shionogi to Effectively Abolish Retirement Age From Fiscal 2027
Shionogi Pharmaceutical has decided to effectively abolish its retirement age system from fiscal 2027. The current system requires retirement at 60 with optional re-employment until 65. Under the new framework, the retirement age will be extended to 65, with annual contract renewals as regular employees thereafter. The company will shift to a personnel system based on job content and performance rather than age, and will replace the lump-sum retirement allowance with defined contribution pension arrangements. Details are being negotiated with the labour union.
Shionogi Pharmaceutical has decided to effectively abolish its retirement age system from fiscal 2027. Under the current system, employees retire at 60 and those who wish may be re-employed until 65. The new system will extend the retirement age to 65 and allow employees to continue beyond that age as regular staff with employment contracts renewed on an annual basis.
The company plans to promote a personnel system that determines compensation based on job content and results rather than age, aiming to leverage the knowledge and experience of senior employees while securing its talent pipeline. The new framework also draws on overseas employment practices.
Under the current re-employment system, employees are typically removed from management positions and often face reduced pay. The company has also decided to abolish the lump-sum retirement allowance and shift it to defined contribution pension and other arrangements. Specific details of the new system are being negotiated with the labour union.
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