Yakushoku teinen 役職定年

Mandatory removal from a management post at a set age, usually around 55. Also written post-off, yakushoku teinen sei, managerial retirement age.

Many Japanese companies set two ages for their managers. One is the mandatory retirement age, usually 60 or 65, when employment ends or switches to re-employment. The other, earlier, is the age at which a manager must give up a line position such as department head or section chief. After this "post-off", the employee stays with the company, often as a specialist, adviser or individual contributor, frequently on lower pay.

It is not required by law. Companies introduced it mainly when the retirement age rose from 55 to 60, to keep management posts open for younger staff and to control the cost of seniority pay. In the National Personnel Authority's 2023 survey of private employers, about 17% had a managerial retirement age rule. Among companies with such a rule, 55 is the most common age. It is more common at larger employers. In one widely reported survey of affected employees, just over half said their annual pay fell by 10% to 30%. Some large employers have abolished it as they extend retirement ages and move to job-based pay.

What it means for a foreign employer

Sources

Spotted something wrong, or have an example from your own hiring in Japan? Suggest an edit.

General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.