Honda Motor Co. plans to raise its retirement age by five years to 65, making the carmaker one of Japan Inc.’s biggest companies to take action in coping with the nation’s aging demographics, Bloomberg reported.
Other proposed changes that will apply to about 40,000 employees at Honda and five of the group’s other firms include a shift to child-care and nursing allowances from family allowances, spokesman Ben Nakamura said Monday.
Honda also plans to introduce a work-from-home and partial-workday system and adopt a salary and bonus structure that widens the pay gap between higher and lower performers.
The moves could position Honda as one of Japan’s most aggressive companies in seeking programs and policies to help deal with a population that is aging at the fastest pace in the developed world.
More flexible work arrangements may also contribute to Prime Minister Shinzo Abe’s initiatives to boost the proportion of women in the workplace.
For about 91 percent of companies in Japan with at least 1,000 workers, the retirement age is 60, a labor ministry survey this year showed.
Working from home and support for employees with children are uncommon.
Beverage maker Kirin Holdings Co. began two years ago to allow one day of work from home per week, the Nikkan Kogyo newspaper reported at the time.
Sony Corp. also allows leave for child-rearing and nursing care, a program that 195 employees used in the 2014 fiscal year.
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