kritika 
The quiet revolution is taking place in Japan jobs after 65. Japanese drug maker Shionogi is abandoning the traditional practice of demoting top executives after retirement to part-time contracts, allowing them to remain regular employees, now that they’re being evaluated based on results, not their years of service. It is one of the most tangible signs so far that the Japanese labour system is having to change.
Quick Facts
| Detail | Info |
| Company | Shionogi & Co. (Japanese pharmaceutical company) |
| New Retirement Age | Increased from 60 → 65 (to be effective next year) |
| Post-65 Employment | Regular contract may be possible (not guaranteed). |
| Review Cycle | Reviewing performance and role needs on an annual basis |
| When First Workers Hit 65+ | ~5 years from now |
| Japan’s 65+ Workforce (2025) | 9.43 million — a record high |
| % of senior (65+) Workers on Non-Regular Contracts | 76.1% |
| The majority of companies continue to have a Retirement Age of 60. | 62.2% |
Why This Matters Right Now
In Japan, retirement is a one-size-fits-all process: leave the job, reduce pay, re-enter (optionally) as a short-term worker, on a fixed-term contract with diminished benefits. The years of experience and expertise remained, but not so did the paycheck and employment.
Shionogi is making changes to that calculation. The new system allows employees who turn 65 and wish to continue to work to stay on regular work contracts, as long as the employer agrees that their performance is sufficient and there is a continued need for the position. This is reviewed on an annual basis. There is no magic formula—and there is no magic formula that the calendar date has passed.
That’s a big difference from how most Japanese companies have handled their forced retirement in Japan.
The Numbers Behind the Shift
The actual driving force behind these changes is Japan’s declining population. The country now has a record 9.43 million workers aged 65 and above, but take a closer look, and it becomes complicated: over three-quarters of these workers are considered non-regular. They are required but not appreciated in the same manner.
This has been happening for a few years now, but the legal system has been pushing companies in this direction. Since 2012, companies have had to provide employment to employees until they reach age 65. They have been expected — on a best-efforts basis — to do that until 2021. Compliance frequently resulted in second-class rehire, not real ongoing employment.
Shionogi’s move is to consider the period after 65 years of age as a real career phase, rather than an afterthought.
Comparison: How Companies Are Rethinking Older Worker Policies
| Company | Retirement Age | Post-Retirement Policy |
| Shionogi | 65 (raised from 60) | Employees may be offered a regular contract after 65 years of age and will be reviewed on an annual basis thereafter. |
| Daiwa House | 65 | Great option – work until 67 at the same wage and bonus! |
| Calbee | 60 | In addition to retirement-level pay, there are a number of “senior meister” positions. |
| Cainz | 65 (raised from 60) | The same pay system continued after 60. |
| Hitachi | Not disclosed | Equivalent work, no pay cuts for rehired ‘senior employees’ |
| Typical Japanese company | 60 | Fixed-term re-engagement with reduced pay and grade |
What’s Actually Changing — and What Isn’t
It is important to be aware of the boundaries of Shionogi’s reform. This isn’t an open-ended offer of permanent employment past 65. Hiring/firing is done annually depending on the performance of the job and if it is still required. It’s a policy that applies to employees who are currently working, and it would see the first workers with regular employment status after 65 be around 5 years away.
Change– the default assumption. Rather than automatically reassessing older workers as second-class citizens, the issue is whether or not their contributions are worth keeping on board on an equal basis. Being over 65 in Japan is no consolation; it’s now a viable choice — at least at Shionogi and more and more at other firms facing the same demographic challenges.
Japan Jobs After 65: The Bigger Picture
Shionogi is certainly not the only company to reconsider this. The trend is universal among Japanese firms, from Daiwa House to Calbee, to Cainz to Hitachi: it is more about the necessity of older workers’ employment, not goodwill.
The population of the working age in Japan is declining. It’s very difficult to replace the knowledge and skills acquired by people over the course of 30-40 years of work. The loss of that knowledge at some arbitrary age cutoff is increasingly reflected in company balance sheets, as the labour shortage intensifies.
It is not simply a ‘charity’ move; it is a ‘competitive’ one. Employers that retain competent employees with genuine contracts, genuine pay, and genuine training are more likely to gain and retain institutional knowledge, continuity, and quality than employers who rotate their older employees through short-term, non-permanent hires.
The employment policy circle is shifting away from the fringe and toward the mainstream, with Japan being at the epicentre of the shift.
FAQs
Does every Shionogi employee automatically keep their job after 65?
No. Their employment beyond 65 is reviewed each year – the company evaluates the job and whether the position needs to be covered. It’s not guaranteed; it’s performance-based.
What is the difference from the normal rehire system in Japan?
Usually, Japanese firms use retired workers under fixed-term contracts whose salary is less than that of a regular employee. Shionogi is retaining on regular contracts those employees who meet the eligibility criteria — that is, they will not automatically lose their job or eligibility for benefits because of their age.
When are the first regular employees in the system in their 65+ age group?
The policy is in effect for 5 years from the date of implementation because it applies to employees who will be retiring from their roles in the next 5 years.
Will this be changed nationwide in Japan?
No, not yet. Not yet. Despite the legal requirements, most companies (62.2%) still have a retirement age of 60, with a further 24.7% offering employment up until age 65 and a further 12.7% encouraging it until age 70. That’s what is notable about Shionogi’s move; it takes it beyond the law.
Is there any other Japanese company that does something similar?
Yes – Daiwa House, Calbee, Cainz and Hitachi have all implemented policies to maintain pay or extend working age, but the details differ.
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