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Parliament passes bill to extend retirement age of 60

Posted April. 24, 2013 02:41,   


The National Assembly is taking the necessary steps to enact laws related to economic democratization, with its standing committees racing with each other. The legislative review subcommittee under the Labor and Environment Committee approved a revision bill Tuesday to the “Act to ban on age discrimination and promote the employment of senior citizens,” which obliges employers to guarantee retirement age of 60 in phases by type of employer beginning in 2016.

The revision bill defines employers subject to the rule obliging the 60-year retirement as companies and state-run corporations employing 300 or more from 2016, and all companies, national and provincial governments employing less than 300 from 2017.

The revision bill includes provisions that require employers and unions of companies that have introduced the extended retirement system to take the necessary measures, including reshuffle of pay systems according to their business conditions. This provisions have been taken as the National Assembly partially has accepted the ruling party’s demand that a peak salary system be introduced to ease growing burden on employers due to the obligatory extension of retirement age to 60.