[Asia Economy Reporter Buaeri] Voluntary retirement has begun at major commercial banks. Unlike in the past, there is a growing atmosphere where quite a few employees want to take voluntary retirement. Moreover, since major commercial banks have recorded record-high earnings this year, expectations for voluntary retirement benefits have also increased.
According to the financial sector on the 3rd, Hana Bank is accepting applications for special pre-retirement from this day. Hana Bank has regularized special pre-retirement in January and July every year.
The target is general employees aged 40 or older (as of January 31) with more than 15 years of service. For those born between 1968 and 1970, managers receive special retirement benefits equivalent to up to 36 months of average monthly salary (differentiated by birth year and month). Supervisors and clerks receive 36 months of average monthly salary. Those born after 1971 receive voluntary retirement benefits of up to 24 months of average monthly salary depending on their age.
Earlier, Shinhan Bank also started accepting voluntary retirement applications the day before. The target includes general employees at deputy branch manager level or higher born after 1964 (with more than 15 years of service), and general employees below grade 4, permanent contract employees, RS (Retail Service) employees, and management support contract employees born before 1978 (with more than 15 years of service). This means that even those aged 44 (born in 1978) can take voluntary retirement.
KB Kookmin Bank has also been accepting voluntary retirement applications since the 28th of last month. The target is those born between 1967 and 1972, up to age 50. Final retirees receive special retirement benefits equivalent to 23 to 35 months of average monthly salary depending on their length of service.
Woori Bank also accepted voluntary retirement applications until the 27th of last month. The target includes managers born in 1974, supervisors born in 1977, and clerks born before 1980. The amount of special retirement benefits is set at 24 months of average monthly salary for those born before 1967 who are subject to the wage peak system, and 36 months for the others.
In January last year, 1,817 employees from the four major banks (KB Kookmin Bank 674, Shinhan Bank 250, Hana Bank 478, Woori Bank 415) packed up. However, this year, there is a forecast that more than 2,000, possibly close to 3,000, may leave the banks by the end of this month. A commercial bank official said, "Nowadays, there are even employees waiting for voluntary retirement," adding, "Since the banks performed well this time, expectations for retirement benefits will be higher."
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