Details of the Re-employment System

Details of the re-employment system are as follows:

Target Employees

  1. Mandatory retirees
  2. Employees who retired after an employment extension
  3. Employees who retired before the fixed retirement day and who fall under any of the below
  • Retirees who served as national public employees for more than 25 years and 5 years have not passed since the day following the first day of retirement
  • Persons who have been re-employed under A. above
  • Retirees who served as national public employees for more than 25 years and who have been re-employed based on the provisions of the Self-Defense Forces Law within 5 years from the day following the first day of retirement

This re-employment system is applied to employees of government enterprises and specified independent administrative institutions but their remuneration and working hours are specified by responsible Ministers or specified independent administrative institutions, respectively.

Employment and Hiring Period

• Employment Method

Selection/employment based on previous work performance

• Hiring Period

Within one year

• Extension of Hiring Period

Extendable within one year upon obtaining the employee's agreement when his/her work performance immediately before extension is satisfactory

• End of Hiring Period

Before the first March 31 after the day when the re-employed employee becomes 65 years old The upper age limit of the re-employment will be raised to 65 years old gradually in line with the gradual raising of the age for the start of full mutual aid pension payments.

The extended hiring period may be re-extended under the above conditions.

The upper age limit of re-employment will be raised gradually, by one year of age every three years, until reaching 65 years of age as shown below, in line with the gradual raising of the age for the start of full pension payments from 60 to 65 years of age. The upper age limit was 63 years old in FY 2008.

Working Hours and Leave System

• Working Hours

Full-time work (40 hours/week) or short-time work (16–32 hours/week)

In addition to the full-time work system, which is the same system for the pre-retirement employees, the short-time work system (16–32 hours/week) is available for re-employed public employees to allow flexible work patterns. Under the "short-time work system", for example, employees can work half-days or alternate-days (Monday, Wednesday and Friday).

Day-offs and Working Hours of Short-time Workers (Principle)
* 2 or more days off per week including Saturday and Sunday
* Up to 8 hours work per day

Working Hours of Short-time Workers (when the working hours is set as 20 hours/week)
  Mon. Tue. Wed. Thu. Fri. Sat. Sun.
Case1 4 hours 4 hours 4 hours 4 hours 4 hours Day off Day off
Case2 5 hours 5 hours 5 hours 5 hours Day off Day off Day off
Case3 8 hours Day off 8 hours Day off 4 hours Day off Day off

• Leave System

The leave system applied to pre-retirement employees is applied to re-employed public employees (annual leave, sick leave, special leave and nursing leave).

However, the annual leave of short-time workers is calculated by the formula below and set within 20 days according to their working hours and work patterns.

* Regular part-time employees (Case 1 and 2 above; the same weekly working days and the same daily working hours)
20 days × the number of working days per week / 5 days
(Note) When an employee who falls under Case 1 or 2 takes hour-based annual leave, the number of annual leave days taken is calculated based on his/her daily working hours.

* Irregular part-time employees (Employees other than regular part-time employees. Case 3 above)
160 hours × the number of working hours per week / 40 hours / 8 hours
(Hours not longer than one-day working hours are rounded off.)

Annual leave is newly given to re-employed employees. For example, therefore, the number of annual leave days taken before and after retirement is not summed up even when an employee is re-employed on the day after the fixed retirement day.

In the case of a hiring period extension, the annual leave days before completion of the re-employment period are calculated.

Remuneration

• Monthly Salary

The monthly salary is specified for each grade of duty. (The monthly salary of short-time workers is multiplied by the percentage of weekly working hours in 40 hours.)

• Pay Step Increase System

None

A certain monthly salary is set for re-employed employees depending on each grade of duty. The monthly salary is paid to re-employed employees according to the grade of duty after re-employment. The monthly salary of short-time workers is calculated in proportion to their working hours.

<Monthly salary for full-time employees>
Salary Schedule for Administrative Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 186,800 yen 214,600 yen 259,000 yen 279,400 yen 295,000 yen 321,100 yen 364,600 yen 399,000 yen
Grade of duty Grade 9 Grade 10            
Monthly salary 451,600 yen 534,200 yen            
Salary Schedule for Administrative Service (II)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5      
Monthly salary 192,700 yen 204,200 yen 226,400 yen 247,700 yen 279,700 yen      
Salary Schedule for Professional Administrative Service
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 209,500 yen 244,300 yen 288,400 yen 321,400 yen 364,600 yen 399,000 yen 451,600 yen 354,200 yen
Salary Schedule for Taxation Service
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 204,900 yen 231,000 yen 283,700 yen 310,500 yen 325,200 yen 349,700 yen 386,300 yen 419,200 yen
Grade of duty Grade 9 Grade 10            
Monthly salary 462,500 yen 534,200 yen            
Salary Schedule for Public Security Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 240,600 yen 252,500 yen 256,800 yen 293,100 yen 310,500 yen 325,200 yen 349,700 yen 386,300 yen
Grade of duty Grade 9 Grade 10 Grade 11          
Monthly salary 419,200 yen 462,500 yen 534,200 yen          
Salary Schedule for Public Security Service (II)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 211,900 yen 239,200 yen 286,700 yen 310,500 yen 325,200 yen 349,700 yen 386,300 yen 419,200 yen
Grade of duty Grade 9 Grade 10            
Monthly salary 462,500 yen 534,200 yen            
Salary Schedule for Maritime Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7  
Monthly salary 219,600 yen 249,800 yen 284,200 yen 326,400 yen 356,300 yen 404,500 yen 474,700 yen  
Salary Schedule for Maritime Service (II)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6    
Monthly salary 214,400 yen 229,000 yen 235,000 yen 257,600 yen 286,900 yen 317,900 yen    
Salary Schedule for Educational Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5      
Monthly salary 287,200 yen 299,500 yen 322,500 yen 409,100 yen 547,400 yen      
Salary Schedule for Educational Service (II)
Grade of duty Grade 1 Grade 2 Grade 3          
Monthly salary 251,400 yen 298,800 yen 317,300 yen          
Salary Schedule for Research Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6    
Monthly salary 216,900 yen 262,600 yen 288,800 yen 332,900 yen 393,300 yen 536,000 yen    
Salary Schedule for Medical Service (I)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5      
Monthly salary 293,800 yen 336,200 yen 390,600 yen 463,700 yen 563,600 yen      
Salary Schedule for Public Security Service (II)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8
Monthly salary 187,800 yen 214,800 yen 247,200 yen 260,800 yen 287,300 yen 329,200 yen 373,100 yen 436,600 yen
Salary Schedule for Medical Service (III)
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7  
Monthly salary 234,500 yen 259,300 yen 266,800 yen 277,300 yen 294,500 yen 332,700 yen 379,200 yen  
Salary Schedule for Welfare Service
Grade of duty Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6    
Monthly salary 200,700 yen 244,500 yen 259,100 yen 293,700 yen 321,100 yen 364,600 yen    
Salary Schedule for Specialized Staff
Grade of duty Grade 1 Grade 2 Grade 3    
Monthly salary 330,800 yen 435,600 yen 492,100 yen    

Allowances

Major allowances paid to re-employed employees are listed below. Life-related allowances paid to deal with increases of living costs according to the life stage, based on long-term continued employment, and allowances primarily designed to retain human resources (family, housing, family-unattended-transfer, cold area, remote area and other allowances) are not paid to re-employed employees.

Allowances paid to re-employed employees (Example)

  • * Commuter Allowance
  • * Area Allowance (excluding allowances paid exceptionally)
  • * Overtime Allowance
  • * Night Duty Allowance
  • * Hardship Duty Allowance
  • * End-of-term and Diligence Allowance
  • * Holiday Pay
  • * Day/Night Watch Duty Allowance
  • * Salary Adjustment Pay

An equivalent of a 2.35-month salary (for standard performers) is paid annually as the End-of-term and Diligence Allowance in addition to the monthly salary to ensure an appropriate and reasonable annual remuneration.

  June December Total
End-of-term Allowance pay rate 0.75 months 0.85 months 1.6 months
Diligence Allowance pay rate 0.35 months 0.4 months 0.75 months
Total 1.1 months 1.25 months 2.35 months
[Reference] Example of annual income when an employee is re-employed as a (full-time) regular administrative service (Salary + End-of-term and Diligence Allowance)
Re-employment position (Example) Monthly salary Annual income
Senior officer-level employee of a regional or prefectural bureau (Administrative Service (I) Grade 2) 214,600 yen Approx. 3 million yen
Unit Chief-level employee of a regional or prefectural bureau (Administrative Service (I) Grade 3) 259,000 yen Approx. 3.7 million yen
Assistant Director-level employee of a regional bureau or Director-level employee at a prefectural bureau (Administrative Service (I) Grade 4) 279,400 yen Approx. 4 million yen

Others

  • The discipline, efficiency, change-in-status system, fairness, accident compensation system applied to re-employed employees is basically the same as those applied to pre-retirement employees.
  • Dispatch to international organizations, exchange through dispatch under the personnel exchange program between the government and the private sector, and the Self-development Leave are not applied to full-time employees. In addition to these, the Child Care Leave System and the Short-time Working System for Child Care are not applied to short-time employees.
  • Retirement Allowance is not paid to re-employed employees. Only full-time employees can join the Mutual Aid Association (the membership criteria of the Employees' Pension Insurance and the Health Insurance are applied to short-time workers.).
  • Full-time employees join the Employment Insurance scheme while short-time workers join the insurance scheme depending on their working hours.
  • Accommodation is provided to full-time re-employed employees, as is the case with pre-retirement full-time employees. Regarding short-time workers, accommodation is provided only when the employee engages in duties for which free accommodation is provided based on the current accommodation system.

Information

Post-retirement Life Planning

Health, family and household finances later in life vary widely. Therefore, it is very important to consider post-retirement life planning in accordance with individual life conditions.

The NPA produces and distributes booklets, "How to Take the Next Step – Post-retirement Life Planning –", which contains information useful in consideration of post-retirement life planning, retirement allowance, pension benefits, social insurances, and health management, and "Selection of Post-retirement Work" which summarizes attitudes to find a job proactively in the non-public sector, utilizing ability, knowledge and experience, and points to found a private company. The NPA also holds the "Life Planning Seminar" for employees in their early 50's.

[Reference]

Attitude toward Post-retirement Work among Public Employees in their 50s

(1) Hope for and purpose of post-retirement employment

As many as 90% employees "hope to work" after retirement, of whom 84% cited "to earn a living" as a major purpose.

(2) Hope for re-employment in the public sector and desired work pattern

Of those who hope to work after retirement, 26% "hope for re-employment in the public sector" while 43% "hope to work regardless of the public or private sector".

Of those who hope for re-employment in the public sector, 42% hoped for "full-time employment", 43% hoped for "short-time working", and 15% had "no preference".