Salary peak system

     Nowadays, the government is in the process of reorganization of salary peak system. The salary peak system wsa first introduced from 2003 and is operating 11.2% among 8399 companies now. The salary peak is a gradual salary cut for emploees after they reach a certain age in return for job security. Even though I am now job seeker, I think that it is really effective system. there are some reasons for my opinion.

     First, It is good for job creation for elderly people in an aging society. Our country is having a difficulty in growing elderly people population. There is a growing need to introduce this system in preperation for aging society. Second, the company can cut down labor costs. If there is no salary peak system, they have to hire new workers by giving higher annual income. On the other hand, They use skilled workforce at low cost due to this system. Lastly, This system can resolve the problem about wage differential. It is continuing The problem Wage system is done on the basis of seniority in most company.


     Some people say that this system is bad effect on youth unemployment. But It is also helpful for solving the problem of youth unemployment. Because the company can hire new employee due to the reduced labor costs. Ministry of Employment and Labor predicts that this system will be more applied to many company.