Employment of older persons: mandatory up to age 65, a duty to make efforts up to age 70 (34.8% implemented)More companies let older people keep working longer
Under the Act on Stabilization of Employment of Older Persons, the mandatory retirement age must be 60 or higher, and an employer with a retirement age below 65 must adopt one of the following: raising the retirement age, a continued employment system, or abolishing the retirement age. From April 1, 2021 (Reiwa 3), a duty to make efforts to adopt measures securing work opportunities up to age 70 was also added. As of June 1, 2025 (Reiwa 7), the share of companies that have implemented the measures is 99.9% for up to age 65 and 34.8% for up to age 70.
Key points
- The continued employment system has covered all employees who wish to stay since fiscal 2013 (Heisei 25). Continued employment at group companies is also allowed.
- There are five measures for up to age 70: raising the retirement age to 70, a continued employment system, abolishing the retirement age, outsourcing contracts, and engagement in social contribution projects.
- The outsourcing-contract and social-contribution-project measures are introduced with the consent of a labor union representing a majority of workers, or of a majority representative.
- In the 2025 (Reiwa 7) report (companies with 21 or more employees), 34.9% of companies had a retirement age of 65 or higher (up 2.3 percentage points from the previous year).
What to do in practice
- Check whether your company's retirement age and continued employment system meet the obligation up to age 65.
- Consider which of the measures up to age 70 you can introduce, and discuss with labor representatives as needed.
In Japan, companies have rules so that people who want to can keep working longer. Companies must provide a way to keep working until age 65, and are asked to do their best to provide one up to age 70.
Points
- Up to age 65, the company must set up a way for people to keep working
- Up to age 70, the company should try its best to set up such a way (a duty to make efforts)
- Only about 3 in 10 companies (34.8%) have a system for up to age 70 so far
What the words mean
- Continued employment (継続雇用)
- Continuing to work at the same company after the retirement age
- Duty to make efforts (努力義務)
- A rule that says "you don't have to, but you should try your best to"
- Ministry of Health, Labour and Welfare (MHLW): MHLW: Employment of Older Persons (Act on Stabilization of Employment of Older Persons)
- Ministry of Health, Labour and Welfare (MHLW): MHLW: Announcing the Results of the 2025 (Reiwa 7) "Report on the Employment Situation of Older Persons"
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.