Rep. Park Jung Proposes Gradual Increase of Retirement Age by Company Size... Introduces Amendment to the 'Elderly Employment Act'

On the 30th, Park Jung, a member of the Democratic Party of Korea, announced that he had taken the lead in proposing a revision to the 'Elderly Employment Act' that gradually raises the retirement age for workers in stages according to the size of the company.

According to the amendment, the retirement age for workers will be set from the current '60 years or older' to '65 years or older,' but the implementation timing will differ according to the size of the company, gradually extending the retirement age.

For workplaces with 300 or more regular employees, the law will apply 5 years after enforcement; for workplaces with 50 to less than 300 employees, it will apply 2 years after; and finally, for workplaces with 5 to less than 50 employees, it will apply 1 year after.

Chairman Park Jeong of the Budget and Accounts Special Committee Presiding Over the First Meeting of the 22nd National Assembly
(Seoul=Yonhap News) Reporter Kim Juseong = Park Jeong, chairman of the Budget and Accounts Special Committee of the National Assembly from the Democratic Party of Korea, is presiding over the first plenary session of the 22nd National Assembly held at the National Assembly in Yeouido, Seoul on the morning of the 28th. 2024.8.28
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The current law requires employers to set the retirement age at 60 or older, and even if the retirement age is set below 60, it is regarded as 60.

Park Jung said, "There is a need to extend the retirement age as the current retirement age and pension receipt timing do not match, causing income gaps during the interim period," adding, "Since immediate application may vary depending on the circumstances of companies, it is necessary to reduce the burden on companies through phased retirement age extension measures and for the government to provide active support."

The amendment allows employers who extend the retirement age of workers to receive consultation and incentives. This is to support employers in alleviating the burden arising from the application of the law.